USD/CAD finds resistance ahead of 1.4000, slumps to 1.3930 region

• WTI looks to settle in red after rebounding to $24.
• US Dollar Index stays directionless near mid-99s on Monday.
• Bank of Canada is expected to keep its policy rate unchanged on Wednesday.

The USD/CAD pair advanced to a daily high of 1.3987 during the American session but failed to preserve its momentum. As of writing, the pair was trading near the lower limit of its daily range around 1.3930, erasing 0.15% on the day.

Crude oil prices started the new week under modest selling pressure after the deal reached by OPEC+ and other producers to cut the oil reduction by 9.7 million barrels per day failed to convince investors. Although the WTI staged a rebound to $24 after Saudi energy minister said the effective oil supply cuts could reach 19.5 million barrels per day, it dropped below $23 in the last hour to help the pair limit its losses. 

Eyes on BoC

The next significant catalyst for the CAD will be the Bank of Canada’s monetary policy announcements on Wednesday. Markets expect the BoC to keep its interest rate unchanged at 0.25% and investors will focus on the press conference.

Meanwhile, the US Dollar Index, which fell sharply last week after the Fed announced new measures to help the economy with loans totalling $2.3 trillion, is staying flat near 99.50 area on Monday to reflect the subdued market action.

Technical levels to watch for