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The U.S. dollar inched lower against its Canadian counterpart during the course of Monday’s session, led by stronger demands on oil prices for the commodity-related Canadian currency.

USD/CAD settled at 1.3404 in U.S. trading, marking the pair’s lowest level since November 22. However, the pair attempted a consolidating movement at 1.3417, retreating 0.73%.

The pair has found support at 1.3373, suggesting the pair’s lowest level since November 22, while resistance at 1.3538, the session high.   

The Canadian dollar remained stronger as oil prices sharply rallied on Monday’s close, followed by reports on Iraq plans to collaborate with the OPEC members to make reasonable settlements.

Subsequently, OPEC is scheduled to hold a meeting in Vienna on Wednesday, with the producer cartel attempting to get its 14 member states, including the non-OPEC member of Russia in order to initiate coordinated production cuts to reduce the global supply glut that has sent oil prices halve in two years.    

Poloz’s Comments Fails to Affect USD/CAD

Ahead of an upbeat comments from Bank of Canada’s Poloz, it seemed that the USD/CAD pair hadn’t been affected at all, which remained steady above 1.34 handle. In fact, the Canadian dollar remained at the mercy of any movement in oil prices.

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At present, the OPEC has failed to reach the production cut target due to the continued objections from Iraq and Iran.

The oil benchmarks WTI and Brent changed hands slightly lower, with the pair resting above 1.34. Meanwhile, the spot declined from the high of 1.3537 to 1.34 levels during the course of Monday’s session.

Current Stance of USD/CAD Pair

The chart below illustrates USD/CAD price movement amid stronger demands on oil prices, including Poloz’s comments.

Given a consolidating movement of the pair, market participants are still indulging in selling the currencies as it is likely that the OPEC meeting would give a lift on the pair.

Further, the pair exactly positioned below support 1.34489 in a light trading volume and is testing another resistance level.

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Conclusion

As the illustrative chart above shows a consolidating movement of the pair, market participants are recommended to still wait on the sidelines as there aren’t any supporting candle present as of today’s close.

In addition, the most awaited OPEC meeting in Vienna, along with other non-OPEC members are expected to give a huge impact on the pair as initiating production cuts as well as a reduction on the global supply glut will have a significant effect on oil prices.   

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