USD/CAD trades in tight range below 1.2800 following Tuesday's drop

USD/CAD is struggling to find direction on Wednesday.
WTI is consolidating its gains near $55 following Tuesday's rally.
US Dollar Index holds above 91.00 ahead of key data releases.

Eren Sengezer FXStreet

Despite the broad-based USD strength, the USD/CAD pair closed in the negative territory on Tuesday as surging crude oil prices allowed CAD to outperform its rivals. Ahead of macroeconomic data releases from the US, the pair is consolidating its losses and was last seen posting small daily gains at 1.2793.

Oil rally loses steam ahead of EIA data

Supported by heightened optimism for a steady recovery in energy demand and declining inventories, crude oil prices started the week on a firm footing. The barrel of West Texas Intermediate (WTI) gained more than 5% in the first two days of the week and touched its highest level in a year at $55.22.

Ahead of the US Energy Information Administration's (EIA) weekly Crude Oil Stocks Change data, the WTI is trading flat on the day near $55, keeping CAD's upside potential limited for the time being.

On the other hand, the US Dollar Index is staying relatively calm near 91.20 as investors await ADP Employment Change and the ISM Services PMI data. Additionally, several FOMC policymakers, including Dallas Fed President Robert Kaplan and Philadelphia Fed President Patrick Harker, will be delivering speeches later in the day.

There won't be any significant macroeconomic data releases featured in the Canadian economic docket.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2785
Today Daily Change	-0.0008
Today Daily Change %	-0.06
Today daily open	1.2793

Trends
Daily SMA20	1.2729
Daily SMA50	1.2788
Daily SMA100	1.2989
Daily SMA200	1.3256

Levels
Previous Daily High	1.287
Previous Daily Low	1.2782
Previous Weekly High	1.2881
Previous Weekly Low	1.2686
Previous Monthly High	1.2881
Previous Monthly Low	1.259
Daily Fibonacci 38.2%	1.2815
Daily Fibonacci 61.8%	1.2836
Daily Pivot Point S1	1.276
Daily Pivot Point S2	1.2727
Daily Pivot Point S3	1.2672
Daily Pivot Point R1	1.2848
Daily Pivot Point R2	1.2903
Daily Pivot Point R3	1.2937

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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