USD/CAD struggles to find direction, trades flat on the day below 1.3400

USD/CAD is trading in a very tight range on Monday.
US Dollar Index is pushing lower at the start of the week.
WTI is gaining more than 1%, trading around mid-$40s.

Eren Sengezer FXStreet

The USD/CAD pair gained nearly 200 pips last week and seems to have gone into a consolidation phase on Monday. As of writing, the pair was virtually unchanged on a daily basis at 1.3385.

DXY starts erasing last week's impressive gains

The broad-based USD weakness caused the pair to drop to a daily low of 1.3359 during the European trading hours. After gaining 1.7% last week, the US Dollar Index (DXY), which tracks the greenback's performance against a basket of six major currencies, dropped to a daily low of 94.15 on Monday. The upbeat market mood at the start of the week seems to be making it difficult for the safe-haven USD to find demand. At the moment, the DXY is down 0.34% on the day at 94.25.

Meanwhile, rising crude oil prices also helped the CAD gather strength on Monday. The barrel of West Texas Intermediate is currently trading at $40.65, gaining 1.45% on a daily basis.

Nevertheless, USD/CAD's movements remain relatively limited amid a lack of significant macroeconomic data releases.

Later in the session, the Federal Reserve Bank of Dallas will release its Manufacturing Business Index data for September. Next important data from Canada will be Wednesday's monthly Gross Domestic Product (GDP), which is expected to show that the Canadian economy expanded by 3% in July.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3385
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3388

Trends
Daily SMA20	1.3193
Daily SMA50	1.3255
Daily SMA100	1.3465
Daily SMA200	1.3525

Levels
Previous Daily High	1.3418
Previous Daily Low	1.3336
Previous Weekly High	1.3418
Previous Weekly Low	1.3171
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3387
Daily Fibonacci 61.8%	1.3367
Daily Pivot Point S1	1.3343
Daily Pivot Point S2	1.3298
Daily Pivot Point S3	1.326
Daily Pivot Point R1	1.3426
Daily Pivot Point R2	1.3463
Daily Pivot Point R3	1.3508

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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