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USD/CAD struggles to shakes off bearish pressure, trades around 1.3070

  • WTI closes in on $62 to help CAD stay strong.
  • US Dollar Index extends slide after erasing 0.7% last week.
  • Coming up: Pending Home Sales and Dallas Fed Manufacturing Index from US.

The USD/CAD pair erased 160 pips last week pressured bu rising crude oil prices and the broad-based selling pressure surrounding the USD. After touching its lowest level in two months at 1.3062 on Friday, the pair seems to have gone into a consolidation phase on Monday and was last down 0.06% on the day at 1.3069.

Crude oil rally continues

Easing concerns over a protracted US-China trade war and upbeat macroeconomic data releases from China helped crude oil preserve its bullish momentum toward the end of the year. The barrel of West Texas Intermediate added 2.17% last week and registered weekly gains for the fourth straight time to help the commodity-sensitive loonie outperform its major rivals. At the moment, the WTI is posting modest daily gains near $61.80.

On the other hand, the greenback struggled to find demand despite a lack of fundamental drivers. The upbeat market mood as reflected by rising global equity indexes' last week made it difficult for the relatively safer USD to attract investors. The US Dollar Index lost 0.7% last week and continued to edge lower on Monday. As of writing, the index was down 0.25% on a daily basis at 96.77.

Later in the session, Pending Home Sales and the Federal Reserve Bank of Dallas' Manufacturing Index data will be looked upon for fresh impetus.

Technical levels to watch for

USD/CAD

Overview
Today last price1.3068
Today Daily Change-0.0015
Today Daily Change %-0.11
Today daily open1.3083
 
Trends
Daily SMA201.3181
Daily SMA501.319
Daily SMA1001.3225
Daily SMA2001.3265
 
Levels
Previous Daily High1.3127
Previous Daily Low1.3064
Previous Weekly High1.3272
Previous Weekly Low1.3064
Previous Monthly High1.3328
Previous Monthly Low1.3114
Daily Fibonacci 38.2%1.3088
Daily Fibonacci 61.8%1.3103
Daily Pivot Point S11.3056
Daily Pivot Point S21.3029
Daily Pivot Point S31.2994
Daily Pivot Point R11.3119
Daily Pivot Point R21.3154
Daily Pivot Point R31.3181

Author

Eren Sengezer

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.

More from Eren Sengezer
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