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USD/CAD drops toward 1.3500 on oil rally, USD weakness

USD/CAD drops toward 1.3500 on oil rally, USD weakness

  • USD/CAD extends slide after losing more than 100 pips on Monday.
  • Crude oil prices climb to multi-month highs on output cut hopes.
  • US Dollar Index remains under pressure amid rallying global equity indexes.

The USD/CAD pair fell sharply and posted its lowest close since early March at 1.3573. The bearish pressure surrounding the pair remained intact on Tuesday amid rising crude oil prices and broad USD weakness. As of writing, USD/CAD was trading at its lowest level in 12 weeks at 1.3510, down 0.45% on the day. 

WTI advances to highest level since early March

Crude oil prices closed the first day of the week with small gains and stretched higher on Tuesday. Boosted by heightened hopes of OPEC+ producers extending the oil output cuts to support prices, the barrel of West Texas Intermediate is trading at fresh multi-month highs at $36.40, gaining 2.4% on a daily basis.

Meanwhile, easing coronavirus-related restrictions in major economies and optimism surrounding a global economic recovery in the second half of the year allow risk-on flows to dominate the financial markets.

With major European equity indexes posting decisive gains on Tuesday, the greenback is struggling to find demand as a safe-haven. At the moment, the US Dollar Index is down 0.26% on a daily basis at 97.57. 

In the second half of the day, the ISM-NY Business Conditions Index will be the only data featured in the US economic docket. Crude oil's performance and the USD's market valuation is likely to continue to impact USD/CAD's movements.

Technical levels to watch for


Today last price 1.3513
Today Daily Change -0.0059
Today Daily Change % -0.43
Today daily open 1.3572
Daily SMA20 1.3941
Daily SMA50 1.402
Daily SMA100 1.3724
Daily SMA200 1.346
Previous Daily High 1.3802
Previous Daily Low 1.3558
Previous Weekly High 1.4008
Previous Weekly Low 1.3715
Previous Monthly High 1.4173
Previous Monthly Low 1.3715
Daily Fibonacci 38.2% 1.3651
Daily Fibonacci 61.8% 1.3709
Daily Pivot Point S1 1.3487
Daily Pivot Point S2 1.3401
Daily Pivot Point S3 1.3243
Daily Pivot Point R1 1.373
Daily Pivot Point R2 1.3888
Daily Pivot Point R3 1.3973


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