- Crude oil fails to extend recovery on Thursday.
- US Dollar Index goes into consolidation near mid-96s.
The USD/CAD pair came under a modest selling pressure in the NA session and fell toward the 1.32 handle before starting to recover its losses. As of writing, the pair was down 0.1% on the day at 1.3220.
Despite this latest fluctuation, the pair fluctuates in a 40-pip range on Thursday as the Thanksgiving holiday in the U.S. doesn’t allow the trading volume to pick up. Earlier today, a broad-based USD weakness caused by the rising demand for European currencies weighed on the pair. At the moment, the US Dollar Index is down 0.18% on the day at 96.54. However, with crude oil failing to preserve its recovery momentum, the commodity-sensitive loonie is having a difficult time staying resilient against the buck.
The barrel of West Texas Intermediate, which rose all the way up to $55.83 on Wednesday, was last seen trading at $53.87, losing 1.3% on a daily basis.
The next significant catalyst for the pair will be tomorrow’s inflation report from Canada. Markets expect the annual CPI to stay unchanged at 2.2%. Additionally, the IHS Markit will publish the preliminary manufacturing and services PMI data for the United States.
Technical levels to consider
The pair could face the initial support at 1.3200 (psychological level/daily low) ahead of 1.3155 (Nov. 20 low) and 1.3055 (100-DMA). On the upside, resistances are located at 1.3245 (daily high), 1.3315 (Nov. 20 high) and 1.3390 (Jul. 19 high).
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