USD/CAD stretches higher to 1.3230 area as crude oil prices continue to slide


  • Barrel of West Texas Intermediate (WTI) loses more than 3% on Monday.
  • US Dollar Index steadies near the 98.50 handle.
  • The pair is likely to stay in a consolidation phase in the second half of the day.

Despite the subdued trading action on Monday amid the Columbus Day holiday in the United States (US) and the Thanksgiving Day holiday in Canada, the USD/CAD pair inched higher on Monday as the sharp drop witnessed in crude oil prices weighed on the commodity-related Loonie. As of writing, the pair was trading at 1.3227, adding 0.24% on a daily basis.

Crude oil turns south on Monday

Heightened geopolitical tensions in the Middle East and the uncertainty surrounding the "phase one" trade deal that the US reached with China on Friday caused crude oil prices to start the week under heavy selling pressure.

After gaining more than $2 in the second half of the week, the barrel of West Texas Intermediate (WTI) erased almost all of last week's gains and was last seen trading at $52.90, down 3.4% on the day.

Commenting on the trade war developments, "there is a five-week period for the two sides to write down exactly what they agreed to in the meeting. This raises questions about how much "progress" has really been made," said ING analysts. "We think there are probably some important disagreements on the terms of a deal, which could include the yuan mechanism."

On the other hand, the poor performance of major European currencies at the start of the week allows the Greenback to find demand and help the pair cling to its daily gains. The US Dollar Index, which tracks the USD's value against a basket of six major currencies, is looking to finish the day with modest gains near the 98.50 handle.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3225
Today Daily Change 0.0025
Today Daily Change % 0.19
Today daily open 1.32
 
Trends
Daily SMA20 1.3273
Daily SMA50 1.3267
Daily SMA100 1.3243
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3302
Previous Daily Low 1.317
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3221
Daily Fibonacci 61.8% 1.3251
Daily Pivot Point S1 1.3147
Daily Pivot Point S2 1.3093
Daily Pivot Point S3 1.3016
Daily Pivot Point R1 1.3278
Daily Pivot Point R2 1.3355
Daily Pivot Point R3 1.3409

 

 

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