USD/CAD struggles to hold above 1.2700 ahead of US data

USD/CAD is posting small daily losses on Monday.
US Dollar Index stays flat on the day around 90.20.
Mid-tier data releases will be featured in US economic docket.

Eren Sengezer FXStreet

The USD/CAD pair posted strong gains on Friday and closed the previous week virtually unchanged. At the start of the new week, the pair is struggling to make a decisive move in either direction. After rebounding above 1.2700 in the last hour, USD/CAD lost its momentum and was last seen losing 0.3% at 1.2693.

Rising oil prices boost CAD

During the early European session, the disappointing IFO data from Germany triggered a sharp decline in the EUR/USD pair and helped the greenback gather strength against its rivals. The US Dollar Index climbed above 90.30 with the initial market reaction but turned flat around 90.20 ahead of mid-tier macroeconomic data releases from the US.

German IFO’s Economist: Economy to stagnate in Q1 2021 amid little confidence.

Meanwhile, the barrel of West Texas Intermediate (WTI) is up 1.5% on the day and trading near $52.80, allowing the commodity-related loonie to outperform the USD.

Later in the day, the Chicago Fed National Activity Index and the Dallas Fed manufacturing Business Index will be featured in the US economic docket.

Meanwhile, the S&P 500 Futures are gaining 0.35%, suggesting that Wall Street's main indexes could start the day in the positive territory and force the USD to remain under bearish pressure in the second half of the day.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2697
Today Daily Change	-0.0029
Today Daily Change %	-0.23
Today daily open	1.2726

Trends
Daily SMA20	1.2721
Daily SMA50	1.2828
Daily SMA100	1.3016
Daily SMA200	1.3302

Levels
Previous Daily High	1.2741
Previous Daily Low	1.2629
Previous Weekly High	1.2799
Previous Weekly Low	1.259
Previous Monthly High	1.301
Previous Monthly Low	1.2688
Daily Fibonacci 38.2%	1.2698
Daily Fibonacci 61.8%	1.2672
Daily Pivot Point S1	1.2656
Daily Pivot Point S2	1.2586
Daily Pivot Point S3	1.2544
Daily Pivot Point R1	1.2768
Daily Pivot Point R2	1.2811
Daily Pivot Point R3	1.288

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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