USD/CAD struggles to find direction, trades above 1.34

• WTI recovers from 3-week lows.
• US Dollar Index stays in daily range.
• Coming up: Retail sales data from the U.S.

The USD/CAD pair is having a difficult time determining its next short-term direction on Monday and fluctuating in a narrow band above the 1.34 mark. As of writing, the pair was at 1.3430, adding 0.1% on a daily basis.

The Bank of Canada’s dovish shift and disappointing  growth data from Canada last week weighed heavily on the loonie before the currency staged a modest recovery against the dollar on the back of upbeat employment figures. Despite Friday’s rebound, however, the pair added more than 140 pips in the week.

Reports of Saudi Arabia considering extending oil output cuts and bringing down exports to below 7 million barrels per day by April allowed crude oil to turn  north on Monday. The barrel of West Texas Intermediate is now up 1% on the day at $56.50, helping the commodity-sensitive CAD stay resilient vs its major rivals.

Meanwhile, ahead of the retail sales data from the U.S., the US Dollar Index is staying relatively calm on Monday as USD bulls are taking a break following last Friday’s disappointing nonfarm payrolls figures. At the moment, the DXU is virtually unchanged on the day at 97.35.

Technical levels to consider