USD/CAD struggles to stage a convincing rebound, trades flat around 1.2920

USD/CAD is trading in a tight range above 1.2900 on Thursday.
WTI retreats below $45 as investors await OPEC to announce output strategy.
USD remains on the back foot, continues to weaken against major rivals.

Eren Sengezer FXStreet

The USD/CAD pair slumped to its lowest level since October 2018 at 1.2905 on Thursday and started to recover its losses. However, the pair met resistance around 1.2950 and turned south ahead of the American session. As of writing, USD/CAD was virtually unchanged on a daily basis at 1.2922.

Oil prices struggle to rise on Thursday

Crude oil's uninspiring performance seems to be limiting the CAD's gains for the time being. Earlier in the day, Reuters reported that OPEC+ was looking to introduce an oil cut rollover with a gradual increase in the output. Pressured by the uncertainty surrounding the 2021 oil production strategy, the barrel of West Texas Intermediate is posting small daily losses at $44.80.

On the other hand, the broad-based USD weakness doesn't allow USD/CAD to make a convincing recovery. The US Dollar Index is currently at its lowest level in more than two years at 90.83, losing 0.3% on the day.

In the absence of significant fundamental drivers, the upbeat performance of major European currencies, especially the GBP, is making it difficult for the USD to find demand.

On Thursday, the US economic docket will feature the Department of Labor's weekly Initial Jobless Claims report and the IHS Markit's and the ISM's services PMI figures.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2922
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.2924

Trends
Daily SMA20	1.3042
Daily SMA50	1.3157
Daily SMA100	1.321
Daily SMA200	1.3523

Levels
Previous Daily High	1.2959
Previous Daily Low	1.2916
Previous Weekly High	1.3112
Previous Weekly Low	1.2972
Previous Monthly High	1.337
Previous Monthly Low	1.2923
Daily Fibonacci 38.2%	1.2933
Daily Fibonacci 61.8%	1.2943
Daily Pivot Point S1	1.2908
Daily Pivot Point S2	1.2891
Daily Pivot Point S3	1.2865
Daily Pivot Point R1	1.295
Daily Pivot Point R2	1.2976
Daily Pivot Point R3	1.2992

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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