USD/CAD struggles to hold above 1.3700 as oil rally supports CAD

USD/CAD remains on track to close the day little changed.
CAD stays resilient against USD boosted by surging crude oil prices.
US Dollar Index clings to small gains above 97.50.

Eren Sengezer FXStreet

The USD/CAD pair advanced to a daily high of 1.3705 during the American trading hours but struggled to preserve its bullish momentum. As of writing, the pair was virtually unchanged on a daily basis at 1.3690.

After spending the European session in the negative territory, the US Dollar Index staged a rebound in the second half of the day and provided a boost to the pair. The data from the US revealed that Pending Home Sales in May rose by 44.3 and Dallas Fed Manufacturing Index recovered to -6.1 in June from -49.2 in May. Supported by the data, the DXY rose above 97.50 and now looks to close the day modestly higher.

WTI capitalizes on risk rally

On the other hand, the latest coronavirus data from the US showed that the new infection rate in Florida and the hospitalization rate in Texas both came in lower than the weekend readings and helped market sentiment improve. The upbeat mood allowed the risk-sensitive crude oil prices to gain traction on Monday.

With the barrel of West Texas Intermediate (WTI) rising more than 4% and trading near $40, the commodity-related CAD is staying resilient against its peers.

On Tuesday, Statistics Canada will release the monthly Gross Domestic Product for April. The US economic docket will feature the Conference Board's Consumer Confidence Index. More importantly, FOMC Chairman Jerome Powell will testify before the US House of Representatives Financial Services Committee about the Fed's coronavirus response.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3689
Today Daily Change	0.0002
Today Daily Change %	0.01
Today daily open	1.3687

Trends
Daily SMA20	1.3544
Daily SMA50	1.3817
Daily SMA100	1.3796
Daily SMA200	1.3488

Levels
Previous Daily High	1.3716
Previous Daily Low	1.3628
Previous Weekly High	1.3716
Previous Weekly Low	1.3486
Previous Monthly High	1.4173
Previous Monthly Low	1.3715
Daily Fibonacci 38.2%	1.3682
Daily Fibonacci 61.8%	1.3662
Daily Pivot Point S1	1.3638
Daily Pivot Point S2	1.3589
Daily Pivot Point S3	1.355
Daily Pivot Point R1	1.3726
Daily Pivot Point R2	1.3765
Daily Pivot Point R3	1.3814

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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