USD/CAD directionless below 1.27 amid a lack of fundamental drivers
- USD/CAD remains confined in a 20-pip range as the week draws to a close.
- WTI stays in consolidation channel above the $57 mark.
- DXY on track to end the week lower.
The USD/CAD pair is moving sideways in a very narrow band on Friday as trading volume remains low amid an empty economic calendar. At the moment, the pair is trading at 1.2675, losing 0.07% on the day.
Greenback struggles to recover Thursday's losses
The US Dollar Index, which dropped sharply on Thursday amid the news of the highly-anticipated corporate tax cut possibly being delayed until 2019, failed to make a meaningful recovery on Friday as investors are waiting on fresh developments on that matter. As of writing, the index was at 94.36, down only 0.06% on the day.
On the other hand, crude oil prices, a conventional driver of the commodity-sensitive loonie's price action, are consolidating their weekly gains with the barrel of West Texas Intermediate treading water a little above the $57 mark. Despite today's inactivity, the barrel of WTI is looking to close the fifth week in a row with gains as investors continue to price the heightened expectations of the OPEC/non-OPEC output cut agreement being extended to the end of 2018. OPEC is going to meet in Vienna on November 30th to decide whether or not to do that.
Technical levels to consider
The RSI indicator on the daily graph sits on the 50 mark, supporting the view of a short-term neutral outlook. On the downside, supports could be seen at 1.2620 (Oct. 24 low) ahead of 1.2525 (100-DMA) and 1.2460 (Oct. 18 low). On the flip side, resistances are located at 1.2740 (20-DMA), 1.2800 (psychological level) and 1.2915 (Oct. 27 high).