USD/CAD struggles to find direction, trades above 1.34
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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


       Daily SMA20:  1.3263
       Daily SMA50:  1.3283
       Daily SMA100:  1.3289
       Daily SMA200:  1.3177
       Previous Daily High:  1.3466
       Previous Daily Low:  1.339
       Previous Weekly High:  1.3469
       Previous Weekly Low:  1.3275
       Previous Monthly High:  1.3341
       Previous Monthly Low:  1.3069
       Daily Fibonacci 38.2%:  1.3419
       Daily Fibonacci 61.8%:  1.3437
       Daily Pivot Point S1:  1.3376
       Daily Pivot Point S2:  1.3345
       Daily Pivot Point S3:  1.33
       Daily Pivot Point R1:  1.3452
       Daily Pivot Point R2:  1.3497
       Daily Pivot Point R3:  1.3528



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