USD/CAD struggles to find direction near 1.2650 as focus shifts to US data


  • USD/CAD is moving sideways around mid-1.2600s on Tuesday.
  • US Dollar Index holds above 92.50 ahead of inflation data.
  • WTI stays in a consolidation phase after climbing to new multi-week highs.

The USD/CAD pair closed the first day of the week in the negative territory as rising crude oil prices provided a boost to the commodity-sensitive CAD. With investors remaining on the sidelines ahead of key inflation data from the US, the pair seems to have gone into a consolidation phase and was last seen trading flat at 12650.

WTI loses bullish momentum on Tuesday

Supported by the OPEC report that showed the global oil demand was forecast to exceed pre-pandemic levels in 2022, the barrel of West Texas Intermediate (WTI) rose more than 1% on Monday. Although the WTI extended its rally to a fresh six-week high of $71.12 on Tuesday, it seems to have gone into a consolidation phase. As of writing, the WTI was clinging to small daily gains at $70.75, limiting USD/CAD's downside.

On the other hand, the US Dollar Index, which lost its traction amid falling US Treasury bond yields on Monday, is virtually unchanged on the day at 92.60.

The US Bureau of Labor Statistics will release the August Consumer Price Index (CPI) data at 1230 GMT. Investors expect the annual CPI to edge lower to 5.3% from 5.4% in July while seeing the Core CPI inching lower to 4.2% from 4.3%. Stronger-than-expected CPU figures are likely to provide a boost to the greenback and vice versa. 

July Manufacturing Sales data will be featured in the Canadian economic docket, which is unlikely to trigger a significant market reaction.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2649
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.2649
 
Trends
Daily SMA20 1.2644
Daily SMA50 1.2581
Daily SMA100 1.239
Daily SMA200 1.2526
 
Levels
Previous Daily High 1.2695
Previous Daily Low 1.2638
Previous Weekly High 1.2762
Previous Weekly Low 1.2518
Previous Monthly High 1.2949
Previous Monthly Low 1.2453
Daily Fibonacci 38.2% 1.266
Daily Fibonacci 61.8% 1.2674
Daily Pivot Point S1 1.2626
Daily Pivot Point S2 1.2603
Daily Pivot Point S3 1.2569
Daily Pivot Point R1 1.2683
Daily Pivot Point R2 1.2718
Daily Pivot Point R3 1.2741

 

 

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