USD/CAD extends consolidation above 1.36

• US Dollar Index finds support ahead of 96.
• WTI posts modest recovery gains on Monday.
• Trading volume is likely to continue to thin out in the NA session.

The USD/CAD pair is trading in a 40-pip range on Monday as markets stay calm ahead of the New Year holiday. As of writing, the pair was virtually unchanged on the day at 1.3640.

The US Dollar Index, which spent the second half of the previous week under pressure, struggled to make a meaningful recovery on Monday and extended its slide toward the critical 96 mark. However, the index didn’t have a difficult time limiting its losses amid a lack of fundamental drivers that could force the greenback to weaken further. At the moment, the DXY is down 0.15% on the day at 96.25.

On the other hand, crude oil moves sideways today and doesn’t provide a directional clue to the commodity-sensitive loonie. As of writing, the barrel of West Texas Intermediate was fluctuating above the $45 mark, adding less than $1 on the day.  

Technical levels to consider