- USD/CAD finds support near 1.3140.
- Crude oil makes a decisive recovery on Tuesday.
- US Dollar Index stays virtually flat on the day near 94.60.
Despite some fluctuations witnessed in the early NA session, the USD/CAD pair remains stuck in its daily range and is struggling to determine a direction amid a lack of significant fundamental catalysts. As of writing, the pair was trading at 1.3162, losing 0.08% on the day.
Earlier in the NA session, the pair dropped to a daily low at 1.3137 after the US Dollar Index slipped below the 94.50 mark following the mixed macroeconomic data releases from the United States. Although Markit’s report today showed that the manufacturing and the services sectors both showed health activity, the composite PMI and the service PMI fell short of the market expectations while the manufacturing PMI came in slightly above experts’ estimates.
However, with the 10-year T-bond yield turning positive near 2.97%, the DXY retraced its losses and rose to 94.65, where it closed the previous day, to provide some lift to the USD/CAD pair.
On the other hand, the commodity-sensitive loonie is still showing some resilience against the buck amid rising crude oil prices. After closing the previous day below the $68 mark on Monday, the barrel of West Texas Intermediate added a little over $1, or 1.5%. Later in the session, the API is going to publish its weekly crude oil stock report.
Technical outlook
The RSI indicator on the daily chart stays flat near the 50 mark, confirming the pair’s indecisiveness. On the upside, resistances could be seen at 1.3200 (psychological level), 1.3285 (Jul. 19 high) and 1.3385 (Jun. 27 high). Supports are located at 1.3120 (50-DMA), 1.3060 (Jul. 11 low) and 1.3000 (psychological level).
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