USD/CAD slides to 1.2600 area as oil gains more than 3%

USD/CAD fell to a fresh weekly low below 1.2600 on Tuesday.
Oil rally continues to help CAD gather strength.
US Dollar Index stays quiet around 93.00 in the American session.

Eren Sengezer FXStreet

The USD/CAD pair extended its slide during the American trading hours on Tuesday and touched its lowest level since August 17 at 1.2576. As of writing, the pair was trading at 1.2600, losing 0.35% on a daily basis.

WTI advances beyond $67

The decisive rally witnessed in crude oil prices since the beginning of the week is providing a boost to the commodity-related loonie. The barrel of West Texas Intermediate, which gained nearly 6% on the back of improving market sentiment on Monday, is currently rising 3.15% on the day at $67.60.

On the other hand, the US Dollar Index (DXY) is fluctuating in a relatively narrow range, allowing the CAD's valuation to impact USD/CAD's movements.

Earlier in the day, the data from the US revealed that New Home Sales increased by 1% on a monthly basis in July. This reading came in better than the market expectation for a decrease of 2.7% but failed to help the greenback find demand. At the moment, the DXY is virtually unchanged on the day at 92.95.

There won't be any high-tier data releases featured in the Canadian economic docket on Wednesday. July Durable Goods Orders from the US will be looked upon for fresh catalysts.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2603
Today Daily Change	-0.0057
Today Daily Change %	-0.45
Today daily open	1.266

Trends
Daily SMA20	1.2576
Daily SMA50	1.2497
Daily SMA100	1.2377
Daily SMA200	1.2553

Levels
Previous Daily High	1.2834
Previous Daily Low	1.2643
Previous Weekly High	1.2949
Previous Weekly Low	1.2512
Previous Monthly High	1.2808
Previous Monthly Low	1.2303
Daily Fibonacci 38.2%	1.2716
Daily Fibonacci 61.8%	1.2761
Daily Pivot Point S1	1.2591
Daily Pivot Point S2	1.2521
Daily Pivot Point S3	1.24
Daily Pivot Point R1	1.2782
Daily Pivot Point R2	1.2903
Daily Pivot Point R3	1.2972

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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