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USD/CAD slides to 1.4050 area as WTI turns positive on the day

  • WTI rebounds above $17 after dropping below $16 on Friday.
  • US Dollar Index stays below 100.50 ahead of key data releases.
  • USD/CAD stays in the positive territory on the weekly chart.

The USD/CAD pair edged higher to the 1.4100 area during the European session as crude oil prices staged a technical correction following the impressive two-day rally.

Crude oil looks to end the week on a strong footing

However, with the West Texas Intermediate (WTI) gaining traction in the last hour, the commodity-sensitive CAD starter to gather strength against its rivals and weighed on the pair, which was last down 0.15% on the day at 1.4050. Despite the daily slide, the pair is still posting modest gains on the weekly chart. 

The WTI rose sharply on Wednesday and Thursday and gained nearly 30% during that period. After sliding to a daily low of $15.76 earlier in the day, the WTI climbed above $17 and was up 0.7% on the day at $17.25 at the time of press.

Later in the day, Baker Hughes US Oil Rig Count figures will be the last potential catalyst for crude oil prices. 

On the other hand, the US Dollar Index (DXY) is staying in a consolidation phase after touching its highest level since the first week of April at 100.87 on Thursday and closing the last four days in the positive territory. Ahead of the Durable Goods Orders and the University of Michigan’s Consumer Sentiment Index data from the US, the index is down 0.07% on the day at 100.41, making it difficult for the pair to stage a rebound.

Technical levels to watch for

 

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