USD/CAD slumps below 1.32 as oil recovery gathers momentum


  • Crude oil stages decisive recovery after falling for two days.
  • US Dollar Index test 98 handle after disappointing data.
  • Annual inflation in Canada remained unchanged at 1.9% in September.

The USD/CAD pair advanced to a fresh session high of 1.3228 in the early trading hours of the American session but changed its direction with the commodity-related Loonie capitalizing on rising crude oil prices. As of writing, the pair was trading at 1.3188, losing 0.07% on a daily basis.

The data published by Statistics Canada on Wednesday revealed that inflation, as measured by the Consumer Price Index (CPI), stayed unchanged at 1.9% on a yearly basis in September and fell short of the market expectation of 2.1%. Although the initial market reaction caused the pair to gain traction, crude oil's helped the CAD stay resilient.

Upbeat market mood boosts crude oil prices

United States (US) President Donald Trump today said that a trade deal with China was "being papered" and allowed market sentiment to improve in the second half of the day. The barrel of West Texas Intermediate (WTI), which spent a large portion of the day moving sideways near the $53 handle following a two-day long slide, is now up 1.6% on a daily basis at $53.60.

On the other hand, the US Dollar Index extended its slide after the US Census Bureau reported that retail sales in September declined by 0.3% to come in worse than the market expectation for an increase of 0.3% weighed on the Greenback. At the moment, the US Dollar Index is at its lowest level since September 13th at 97.99, erasing 0.32% on the day and keeping the pair's losses limited for the time being.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3191
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.3198
 
Trends
Daily SMA20 1.3271
Daily SMA50 1.3266
Daily SMA100 1.3238
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3248
Previous Daily Low 1.3196
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3215
Daily Fibonacci 61.8% 1.3228
Daily Pivot Point S1 1.318
Daily Pivot Point S2 1.3162
Daily Pivot Point S3 1.3128
Daily Pivot Point R1 1.3232
Daily Pivot Point R2 1.3266
Daily Pivot Point R3 1.3284

 

 

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