USD/CAD stays in daily range above mid-1.30s

• US Dollar Index moves sideways above 95 on Monday.
• WTI struggles to stay above $70.
• Canada and the U.S. markets are closed due to Labor Day holiday.

The USD/CAD pair is fluctuating in a tight 30-pip range on Monday and is likely to stay in that band as traders in Canada and the U.S. will are enjoying the long Labor Day weekend. At the moment, the pair is up 0.15% on the day at 1.3063.

Crude oil prices started the day on a positive note on Monday with the barrel of West Texas Intermediate rising above the critical $70 mark. Reports of Russia keeping the output levels steady in September following July's boost helped oil prices gain traction. Furthermore, the Omani oil minister stated that they were expecting oil prices (brent) to remain in the $70-80 range in the remainder of the year. Nevertheless, the WTI struggled to preserve its bullish momentum and was last seen flat on the day at 69.90, which makes it difficult for the commodity-sensitive loonie to stay resilient against the buck.

On the other hand, after finishing the previous week above the critical 95 mark, the US Dollar seems to have steadied above that level amid a lack of significant fundamental drivers. At the moment, the index is up 0.06% on the day at 95.15.

On Wednesday, the Bank of Canada is going to announce its monetary policy decision. Later in the week, on Friday, Canada and the U.S. will be both releasing August unemployment figures.

Technical levels to consider

On the upside, the initial resistance for the pair aligns at 1.3075 (daily high/50-DMA), 1.3165 (Aug. 17 high) and 1.3285 (Jul. 19 high). Supports could be seen at 1.3050 (100-DMA), 1.3000 (psychological level) and 1.2960 (Aug. 7 low).