USD/CAD finds support near 1.33 as WTI fails to hold above $66


  • Bearish pressure on USD/CAD loses strength in late NA session.
  • Crude oil prices turn red on the day ahead of tomorrow's Vienna summit.
  • OPEC is reportedly assessing four different scenarios regarding a supply hike.

The selling pressure seen on the USD/CAD pair seems to have weakened in the last hour as investors approach the commodity-sensitive loonie cautiously ahead of the critical OPEC summit Vienna. As of writing, the pair was trading at 1.3303, losing 0.05% on the day.

Earlier in the NA session, the pair erased its daily gains after the greenback lost its strength against its rivals amid falling T-bond yields. The US Dollar Index, once again, failed to hold above the 95 mark and slumped to mid-94s.

However, the latest headlines regarding a possible oil output increase decision tomorrow made it difficult for the CAD to stay resilient against the buck. 

An OPEC delegate claimed that producers were discussing four possible scenarios on output levels including 1 million, 1.5 million, and 1.8 million increase in production. Crude oil prices reacted negatively to these remarks and the barrel of West Texas Intermediate broke below the $66 mark. The barrel of WTI was last seen trading at 65.70, where it was virtually unchanged on the day.

On Friday, investors will be eagerly waiting for OPEC's decision. Moreover, the Bank of Canada is going to publish its core-CPI data, which is expected to ease to 1.4% on a yearly basis.

Technical levels to consider

With a daily close below 1.3300 (psychological level) the pair could continue to erase its weekly gains and aim for 1.3200 (Jun. 19 low/psychological level) and 1.3160 (Jun. 18 low). On the upside, resistances could be seen at 1.3335/40 (daily high/Jun. 21, 2017, high), 1.3400 (psychological level) and 1.3470 (Jun. 12, 2017, high).

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