USD/CAD remains bearish below 1.3400 amid higher oil prices

• The Dollar remains weak with the CAD supported by higher Oil prices.
• Concerns about supply disruptions are buoying Crude Oil.
• On Tuesday, The Canadian CPI might have a significant impact on the pair.

The Dollar remains depressed, with upside attempts limited below 1.3400. The Canadian Dollar is taking advantage of the recent recovery in Oil prices, with the market awaiting Canadian consumer inflation data, due on Tuesday.

Concerns about Oil supply disruptions are supporting the CAD

British Petroleum (BP) is halting an oil tanker from crossing the Red Sea following reports from the UK Navy of an explosion in a vessel near a Yemeni harbor. This, coupled with reports of previous attacks on commercial vessels by Houthi militias has boosted fears of supply disruptions, that are pushing prices higher.

The calendar is light today, thus the investors will be looking at Tuesday´s Canada CPI, which is expected to have eased below 3% year on year.

These figures will provide some cues on the BoC´s monetary policy that might set the pair´s direction ahead of Thursday´s US GDP and Friday´s US PCE Prices Index data.

USD/CAD Technical analysis

The USD remains under bearish pressure, although oversold levels in some charts allow for a longer consolidation period. Immediate support lies at 1.3350, which closes the path to the 1.3300 area.

On the upside, 1.3400 and 1.3478 are the nearest resistance levels.

Technical levels to watch