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  • WTI preserves small daily gains above $58.
  • Saudi’s Al-Falih says 100% compliance with output cuts will continue at least for 4 months.
  • US Dollar Index stays in red below 96.50.

The USD/CAD pair slumped to a daily low near 1.3300 in the early European morning and staged a  recovery in the last couple of hours. As of writing, the pair was trading at 1.3320, losing 0.1% on a daily basis.

The subdued action in the FX markets on Monday doesn’t allow major pairs  to make decisive moves in any direction. Despite some comments from Saudi oil minister Al-Falih in the last hour, crude oil continues to fluctuate in its daily range and doesn’t provide a directional clue to the commodity-sensitive loonie. Khalid Al-Falih told reporters that he was confident about OPEC+ clinging to 100% compliance with the output cut agreement for the next four months. At the moment, the barrel of West Texas Intermediate is up 20 cents on the day at $58.55.

On the other hand, after dropping around 1% last week, the US Dollar Index started the week under a modest bearish pressure as investors refrain from making large bets ahead of this week’s critical FOMC meeting. At the moment, the DXY is losing 0.08% on the day at 96.40.

Previewing the Fed event, “The Fed’s narrative on interest  rates  has been clear since the dovish pivot at the January FOMC meeting: monetary policy is currently in a good place, and the FOMC will remain patient in assessing the need for any further adjustments to the policy stance,” the HSBC analysts said in a recently published article.

Key technical levels


       Daily SMA20:  1.3282
       Daily SMA50:  1.3262
       Daily SMA100:  1.3302
       Daily SMA200:  1.3187
       Previous Daily High:  1.3374
       Previous Daily Low:  1.3289
       Previous Weekly High:  1.344
       Previous Weekly Low:  1.3287
       Previous Monthly High:  1.3341
       Previous Monthly Low:  1.3069
       Daily Fibonacci 38.2%:  1.3341
       Daily Fibonacci 61.8%:  1.3322
       Daily Pivot Point S1:  1.3292
       Daily Pivot Point S2:  1.3249
       Daily Pivot Point S3:  1.3208
       Daily Pivot Point R1:  1.3376
       Daily Pivot Point R2:  1.3417
       Daily Pivot Point R3:  1.346