USD/CAD trades in the negative territory near 1.3050 on broad USD weakness

USD/CAD is pushing lower at the start of the week.
WTI is trading at its highest level in more than two months near $43.
US Dollar Index extends slide toward 92.00 ahead of mid-tier data.

Eren Sengezer FXStreet

The USD/CAD pair is edging lower on Monday as the rising crude oil prices help the commodity-related CAD outperform its American counterpart, which finds it difficult to find demand as a safe-haven. As of writing, the pair was down 0.37% on a daily basis at 1.3049.

Vaccine headlines impact risk sentiment on Monday

Earlier on Monday, following Pfizer's and Moderna's inspiring results, Oxford/AstraZeneca announced that their coronavirus vaccine candidate was "up to 90%" effective in the latest trials. Risk flows started to dominate the financial markets at the start of the week and the S&P 500 Futures are up 0.6%, suggesting the upbeat market mood will remain intact during the American session.

After losing 0.4% last week, the US Dollar Index dropped to its lowest level since early September near 92.00.

On the other hand, crude oil prices gained traction on hopes for a steady recovery in the global energy demand and provided a boost to the loonie. At the moment, the barrel of West Texas Intermediate is trading at its highest level in 12 weeks at $43, rising 1.4% on the day.

In the second half of the day, the Federal Reserve Bank of Chicago's National Activity Index and the IHS Markit's preliminary Manufacturing and Services PMI data from the US will be looked upon for fresh impetus. Later in the session, Toni Gravelle, Deputy Governor of the Bank of Canada (BoC), will be delivering a speech.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3051
Today Daily Change	-0.0033
Today Daily Change %	-0.25
Today daily open	1.3084

Trends
Daily SMA20	1.3139
Daily SMA50	1.3196
Daily SMA100	1.3256
Daily SMA200	1.3534

Levels
Previous Daily High	1.3097
Previous Daily Low	1.3039
Previous Weekly High	1.3142
Previous Weekly Low	1.3034
Previous Monthly High	1.339
Previous Monthly Low	1.3081
Daily Fibonacci 38.2%	1.3075
Daily Fibonacci 61.8%	1.3061
Daily Pivot Point S1	1.305
Daily Pivot Point S2	1.3016
Daily Pivot Point S3	1.2992
Daily Pivot Point R1	1.3107
Daily Pivot Point R2	1.3131
Daily Pivot Point R3	1.3165

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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