USD/CAD advances to fresh 19-month high, trades near 1.3650
- The barrel of WTI falls nearly 4% on the day.
- Commodity-sensitive loonie suffers losses.
- US Dollar Index stays in the negative territory.
After spending the majority of the day near the 1.36 handle, the USD/CAD pair gathered strength during the NA trading hours and advanced to its highest level in more than 19 months at 1.3660. As of writing, the pair was up 80 pips, or 0.6%, on the day at 1.3655.
Yet another sharp fall seen in crude oil prices seems to be the primary driver of the pair's recent upsurge. Following a decisive recovery, which allowed it to close the day more than 3% higher, the barrel of West Texas Intermediate suffered heavy losses on Thursday. Ahead of the weekly API data from the U.S., the WTI was trading below the $45 mark, losing 3.6% on a daily basis. Additionally, the negative market sentiment as reflected by the drop witnessed in major equity indexes weigh on the risk-sensitive currencies such as the loonie.
On the other hand, the US Dollar Index stays in the negative territory amid falling T-bond yields and limit the pair's gains for the time being. At the moment, the DXY is down 0.4% on the day at 96.63.
There won't be any macroeconomic data releases from Canada in the remainder of the week. On Friday, goods trade balance, new home sales/pending home sales, and Chicago PMI will be released from the United States. However, investors are likely to ignore the data and stay focused on oil prices.
Technical levels to consider
Today Last Price: 1.3658
Today Daily change: 88 pips
Today Daily change %: 0.648%
Today Daily Open: 1.357
Previous Daily SMA20: 1.3436
Previous Daily SMA50: 1.3273
Previous Daily SMA100: 1.3143
Previous Daily SMA200: 1.3054
Previous Daily High: 1.4134
Previous Daily Low: 1.3568
Previous Weekly High: 1.3602
Previous Weekly Low: 1.3372
Previous Monthly High: 1.336
Previous Monthly Low: 1.3048
Previous Daily Fibonacci 38.2%: 1.3784
Previous Daily Fibonacci 61.8%: 1.3918
Previous Daily Pivot Point S1: 1.3381
Previous Daily Pivot Point S2: 1.3192
Previous Daily Pivot Point S3: 1.2816
Previous Daily Pivot Point R1: 1.3946
Previous Daily Pivot Point R2: 1.4322
Previous Daily Pivot Point R3: 1.4511