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  • WTI stays quiet below the $62 mark.
  • US Dollar Index floats above 97.50 ahead of the NA session.
  • Coming up: Trade balance data from Canada and the U.S. and speech by Fed’s Powell.

For the fourth straight day this week, the USD/CAD pair is trading in a narrow band below the 1.35 handle as participants are waiting for the next significant catalyst. At the moment, the pair is up 0.04% on the day at 1.3483. Meanwhile, crude oil prices struggle to build on yesterday’s recovery gains with the barrel of West Texas Intermediate posting small losses below $62 and failing to provide a fresh directional clue to the commodity-sensitive loonie.

In the American trading hours, trade balance data from the United States and Canada will be looked upon for fresh impetus. More importantly, FOMC Chairman Powell will be delivering his opening remarks at the Fed Community Development Research Conference in Washington at 12:30 GMT. There won’t be a Q&A session and Powell’s speech is expected to last about 30 minutes.

Previewing today’s data releases from Canada,  “Real exports should post a more modest advance while higher imports will provide an offset. New home prices for March will be released alongside trade where TD is on consensus for a flat print,” TD Securities analysts said.  

In the second half of the day, markets will be paying close attention to headlines coming out of the U.S.-China trade talks in Washington. A positive outcome could boost the market sentiment and help commodity prices and the CAD gain traction and vice versa.

Technical levels to watch for

The pair could face the initial resistance at 1.3500 (psychological level) ahead of 1.3520 (Apr. 24 high) and 1.3600 (Dec. 21, 2018, high). On the downside, supports are located at 1.3470 (daily low), 1.3445 (May 8 low) and 1.3390 (50-DMA).