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USD/CAD climbs to fresh daily highs near 1.3100

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  • USD/CAD gathered bullish momentum and rose toward 1.3100 on Tuesday.
  • Dollar outperforms its rivals after the US CPI data.
  • Crude oil prices trade little changed on the day.

USD/CAD dropped to its lowest level in over two weeks near 1.2950 on Tuesday but reversed its direction in the early American session. Fueled by the renewed dollar strength, USD/CAD rose sharply toward 1.3100 before starting to consolidate its daily gains. As of writing, the pair was up 0.6% on the day at 1.3070.

The data published by the US Bureau of Labor Statistics revealed on Tuesday that annual inflation in the US, as measured by the Consumer Price Index (CPI), edged lower to 8.3% in August from 8.5% in July. More importantly, the Core CPI, which excludes volatile food and energy prices, jumped to 6.3% from 5.9%, surpassing the market expectation of 6.1%. Following this report, the US Dollar Index erased its weekly losses in a matter of minutes and climbed above 109.00.

Meanwhile, crude oil prices stay relatively calm and allow the dollar's valuation to drive the pair's action. The barrel of West Texas Intermediate (WTI) was last seen trading virtually unchanged on the day at $88.15.

Following the hot US inflation report, Wall Street's three main indexes are down between 1.7% and 3%, allowing the dollar to preserve its strength in the second half of the day.

There won't be any high-impact data releases in the remainder of the day and the risk perception could drive the pair's action.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3073
Today Daily Change 0.0084
Today Daily Change % 0.65
Today daily open 1.2989
Trends
Daily SMA20 1.3035
Daily SMA50 1.2957
Daily SMA100 1.2895
Daily SMA200 1.2786
Levels
Previous Daily High 1.3049
Previous Daily Low 1.2964
Previous Weekly High 1.3209
Previous Weekly Low 1.2982
Previous Monthly High 1.3141
Previous Monthly Low 1.2728
Daily Fibonacci 38.2% 1.2996
Daily Fibonacci 61.8% 1.3017
Daily Pivot Point S1 1.2952
Daily Pivot Point S2 1.2915
Daily Pivot Point S3 1.2867
Daily Pivot Point R1 1.3038
Daily Pivot Point R2 1.3086
Daily Pivot Point R3 1.3123

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