USD/CAD struggles to stage a convincing rebound, trades around 1.2400

USD/CAD trades in a very tight range on Tuesday.
Pair stays within a touching distance of multi-year lows following Monday's drop.
WTI posts modest daily gains, holds above $62 ahead of API data.

Eren Sengezer FXStreet

The USD/CAD pair lost nearly 100 pips on Monday and closed below 1.2400 for the first time in more than three years. Although the pair managed to stage a technical correction on Tuesday, it seems to be having a difficult time gathering bullish momentum. As of writing, USD/CAD was posting small daily gains at 1.2403.

Rising oil prices support CAD on Tuesday

On Monday, the selling pressure surrounding the greenback forced USD/CAD to remain on the back foot. Ahead of the Conference Board's Consumer Confidence data, the US Dollar Index stays in the positive territory around 90.90.

Nevertheless, rising crude oil prices continue to support the commodity-sensitive loonie and don't allow USD/CAD to extend its rebound. Currently, the barrel of West Texas Intermediate is up 0.8% on a daily basis at $64.45. The American Petroleum (API) Institue's Weekly Crude Oil Stock data will be looked upon for fresh impetus at 2030 GMT.

In the meantime, Bank of Canada (BoC) Governor Tiff Macklem will be delivering a speech in the late American session. Last week, the BoC became the first major central bank to taper its asset purchases and to deliver the planned timing of the first rate hike, triggering a rally in the CAD:

Technical levels to watch for

USD/CAD

Overview
Today last price	1.241
Today Daily Change	0.0013
Today Daily Change %	0.10
Today daily open	1.2397

Trends
Daily SMA20	1.254
Daily SMA50	1.257
Daily SMA100	1.2662
Daily SMA200	1.2925

Levels
Previous Daily High	1.2491
Previous Daily Low	1.2384
Previous Weekly High	1.2654
Previous Weekly Low	1.246
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2425
Daily Fibonacci 61.8%	1.245
Daily Pivot Point S1	1.2358
Daily Pivot Point S2	1.2318
Daily Pivot Point S3	1.2251
Daily Pivot Point R1	1.2464
Daily Pivot Point R2	1.2531
Daily Pivot Point R3	1.257

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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