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USD/CAD continues to trade in weekly range below 1.33

  • WTI stays in consolidation below $52.
  • US Dollar Index clings to small gains above 96.
  • Weekly EIA crude oil report next in the calendar.

Since failing to break above the 1.33 mark earlier this week, the USD/CAD pair trades in a relatively tight range and is having a difficult time setting its next short-term direction. As of writing, the pair was down 0.1% on a daily basis at 1.3245.

Indecisive movements of crude oil since the start of the week continue to make it difficult for the commodity-sensitive loonie to find a directional clue. Despite Saudi Arabian energy minister's optimistic comments about the oil market outlook, the barrel of West Texas Intermediate fluctuates around the $52 mark. As markets are waiting for the weekly EIA report, the WTI is down 0.15% on the day at $51.88.

On the other hand, the greenback is also moving within a consolidation channel around the 96 mark to allow the pair to sit comfortably below 1.33. Today's data from the U.S. showed that the import price index declined by 1% on a monthly basis in December amid falling oil prices, but was largely ignored by the participants. Later in the session, the Fed will be publishing its Beige Book. At the moment, the DXY is up 0.1% on a daily basis at 96.06.

Technical levels to consider

With the pair struggling to gain traction, the RSI indicator on the daily chart continues to move sideways a little above the 30 mark, suggesting that buyers have no interest in the pair. Above 1.3300 (psychological level/Jan. 14 high), the pair could extend its gains toward 1.3375 (50-DMA) and 1.3420 (Dec. 17, 2018, high). On the downside, supports are located at 1.3225 (Jan. 15 low), 1.3180 (Jan. 11 low) and 1.3125 (Nov. 16, 2018, low).

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