- OPEC’s monthly report lifts crude oil on Tuesday.
- WTI sticks to strong daily gains ahead of the API data.
- US Dollar Index continues to erase Monday’s gains.
The USD/CAD pair came under pressure on broke below the 1.33 mark to extend its daily slide to a fresh 5-day low of 1.3231. As of writing, the pair was down 0.5% on the day at 1.3236.
A strong rebound witnessed in crude oil prices today helped the commodity-sensitive loonie gather strength against its rivals. In its monthly report today, OPEC announced that the crude oil output in January fell by 800,000 barrels per day to 30.81 million bpd to reflect the impact of output cut deal on the supply. Ahead of the weekly API stock report, the barrel of West Texas Intermediate is adding 2.35% on the day at $53.65.
On the other hand, despite another 1% increase in the 10-year T-bond yields, the greenback is struggling to find demand as investors are looking to book some profits ahead of this week’s important macroeconomic data releases from the United States, namely Wednesday’s inflation report and Thursday’s retail sales figures. At the moment, the US Dollar Index is at 96.70, erasing 0.37% on a daily basis.
Technical levels to consider
The pair could face the initial support at 1.3215 (Feb. 7 low) ahead of 1.3120 (Jan. 30 low) and 1.3070 (Feb. 1 low). On the upside, resistances are located at 1.3315 (daily high), 1.3350 (50-DMA) and 1.3375 (Jan. 24 high). Meanwhile, the RSI indicator on the daily chart has recently eased below the 50 mark, suggesting that a modest bearish pressure is starting to build up.