- Greenback stays quiet on MLK Day.
- WTI looks to settle below $54.
- Coming up: Manufacturing sales and wholesale sales data from Canada.
After touching a daily high of 1.3320 in the early NA session, the USD/CAD pair lost its traction and fell to 1.3280. Although the pair found support there and advanced to the 1.33 area in the last hour, it continues to trade in a consolidation channel amid the subdued market action on Martin Luther King Jr. Day in the U.S. As of writing, the pair was up 0.3% on the day at 1.3296.
Last Friday, the data from Canada showed that the annual CPI rose to 2% in December from 1.7% and helped the loonie gather strength against its rivals. Furthermore, the barrel of West Texas Intermediate added more than 3% to provide an additional boost to the commodity-related CAD. However, with crude oil struggling to extend its rally and the macroeconomic calendar not offering any significant data on Monday, the pair didn’t have a hard time reversing its course. At the moment, the WTI is up 0.2%, or 10 cents, on the day at $53.90.
On Tuesday, Staistics Canada will release manufacturing shipments and wholesale sales data. Furthermore, existing home sales figures from the U.S. will be looked upon for fresh impetus.
Key technical levels
The initial resistance for the pair aligns at 1.3320 (daily high) ahead of 1.3380 (50-DMA) and 1.1.3445 (Dec. 6, 2018, high). On the downside, supports could be seen at 1.3250 (daily low), 1.3180 (Jan. 11 low) and 1.3100 (psychological level). Meanwhile, the RSI indicator on the daily chart is inching close to the 50 area, suggesting a neutral short-term outlook for the pair.
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