Black Pipper

Forex Dreamers

USD/CAD has almost 1.4000 support as WTI battles to remain over $27

The USD/CAD pair fell as low as 1.3991 in over a week on Tuesday before showing a modest recovery in recent hours. At the time of writing, the pair was down 0.66% to 1.4015 on the day. Rising crude prices and market optimism helped CAD on Tuesday to maintain its strength against the dollar. The West Texas Intermediate (WTI) barrel rose above $ 27 in hopes that OPEC + will reduce crude oil production to balance the market.

However, with some reports claiming OPEC + was discussing a production decline for just three months, the STI forced to erase much of its daily profit. At the time of writing, the WTI is trading at $ 26.55, which still rises to about 1% on the day. On the other hand, with the risk aversion flows dominating the markets for the second day in a row, the dollar is struggling to find demand to keep the pair near its lows. Currently, the US Dollar Index, which tracks the USD’s return against a basket of six other major currencies, is down 0.9% at 99.90.

Later in the day, Canadian Ivey PMI data and the US IBD/TIPP economic optimism. they are looking for a new momentum. Investors, however, are likely to continue to respond to changes in crude oil prices and the dollar’s market valuation.

Technical Levels

S1 1.4041
S2 1.3972
S3 1.3862

R1 1.4221
R2 1.4331
R3 1.440

 

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