- Crude oil sell-off weighs on the loonie on Tuesday.
- US Dollar Index looks to close the day above 96.
- Non-manufacturing data from the U.S. disappoint.
The USD/CAD pair rose to a 4-day high of 1.3153 in the early NA session on Tuesday and has gone into a consolidation phase in the upper half of its daily range with the trading action turning subdued. As of writing, the pair was up 0.14% on a daily basis at 1.3132.
The combination of the broad-based USD strength and the heavy selling pressure surrounding crude oil provided the primary boost to the pair today. With Russian oil producer Rosneft on Tuesday saying that it does not project any declines in Venezuela's output in 2019, the barrel of West Texas Intermediate lost its traction and lost nearly 2% to break below the $54 mark. As of writing, the WTI was down 1.75% on the day at $53.86.
On the other hand, the US Dollar Index rose above 96 on Tuesday to recover all the losses it suffered following the FOMC announcement last week. Although today's data from the U.S. showed that the service sector in January expanded at a weaker rate than expected, the greenback preserved its strength and the DXY remains on track to finish the day above 96.
Later in the session, markets will be paying close attention to the weekly API data from the U.S., which could be the next catalyst for the WTI.
Key technical levels
USD/CAD
Overview:
Today Last Price: 1.3132
Today Daily change %: 0.14%
Today Daily Open: 1.3113
Trends:
Daily SMA20: 1.3247
Daily SMA50: 1.3371
Daily SMA100: 1.3219
Daily SMA200: 1.313
Levels:
Previous Daily High: 1.3148
Previous Daily Low: 1.3084
Previous Weekly High: 1.3287
Previous Weekly Low: 1.3069
Previous Monthly High: 1.3664
Previous Monthly Low: 1.3118
Daily Fibonacci 38.2%: 1.3123
Daily Fibonacci 61.8%: 1.3109
Daily Pivot Point S1: 1.3083
Daily Pivot Point S2: 1.3052
Daily Pivot Point S3: 1.302
Daily Pivot Point R1: 1.3146
Daily Pivot Point R2: 1.3178
Daily Pivot Point R3: 1.3209
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