USD/CAD finds resistance near 1.3600, turns flat near 1.3570 ahead of US data
- USD/CAD pair failed to break above 1.3600 during the European session.
- Rising crude oil prices help the loonie find demand.
- US Dollar Index consolidates Tuesday's losses ahead of US data.
The USD/CAD pair closed the first day of the week modestly lower and extended its slide to a daily low of 1.3509 during the Asian session. Although the pair staged a decisive rebound during the European trading hours, it failed to break above 1.3600 and erased its gains. As of writing, USD/CAD virtually unchanged on the day at 1.3565.
The rebound witnessed in crude oil prices seems to be helping the commodity-sensitive loonie preserve its strength against the greenback. After dropping below $35 on Monday, the barrel of West Texas Intermediate (WTI) closed the day in the positive territory boosted by the improving market sentiment. The WTI continued to edge higher and was last seen rising 1.82% on the day at $37.75.
Eyes on US data and Powell's testimony
On the other hand, the greenback came under a renewed selling pressure at the start of the week after the Federal Reserve announced that it will be buying a diversified portfolio of corporate bonds to support the economy.
The US Dollar Index (DXY) lost 0.5% and closed the day at 96.60 on Monday and seems to be having a tough time recovering its losses. At the moment, the DXY is flat on the day at 99.60.
In the second half of the day, Retail Sales data from the US will be looked upon for fresh impetus. More importantly, Jerome Powell, Chairman of the Federal Reserve, will testify on Capitol Hill at 1400 GMT.
Technical levels to watch for