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USD/CAD finds resistance around 1.3300, turns flat near 1.3270

  • Modest USD weakness limit's the pair's upside on Monday.
  • Crude oil slides for the second straight day.

The USD/CAD pair gained traction in the early European session and advanced to a 6-day high of 1.3298. However, the pair struggled to preserve its bullish momentum and erased its daily gains. As of writing, USD/CAD was virtually flat on the day at 1.3272.

Last Friday, crude oil's 8-day long recovery came to an end with the barrel of West Texas Intermediate settling in the negative territory. As the WTI extended its slide on Monday, the commodity-sensitive loonie struggled to find demand and weakened against its rivals. As of writing, the WTI was down 1.3% on the day at $50.90.

On the other hand, as concerns over the potential negative impact of the government shutdown continue to escalate, the greenback stays defensive and makes it difficult for the pair to push higher. With no macroeconomic data releases scheduled to be released from the U.S. on Monday, the US Dollar Index stays in the negative territory and was last down 0.1% on a daily basis at 95.57.

Technical outlook

The RSI indicator on the daily chart for the pair continues to pull away from the 30 handle, suggesting that the recovery is trying to gather strength. On the upside, resistances for the pair could be seen at 1.3300 (psychological level/daily high) ahead of 1.3375 (50-DMA) and 1.3495/1.3500 (Dec. 18, 2018, high/psychological level). On the downside, supports are located at 1.3255 (daily low), 1.3185/80 (Han. 11/Jan. 9 low) and 1.3125 (Nov. 16 low).

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