USD/CAD remains confined in narrow band above 1.23

The USD/CAD pair is having a difficult time finding direction on Monday and is moving sideways in a tight trading range above the 1.23 handle. As of writing, the pair was at 1.2327, losing 0.1% on the day.

Although the greenback is gaining strength against its peers on the first trading day of the week, the USD/CAD is struggling to rise as the rising crude oil prices help the loonie stay resilient against the buck. After staying calm around the 92 handle during the Asian session, the US Dollar Index gained traction and refreshed its daily high at 92.42 when American traders entered the market. Today's price action seems to be a technical continuation of the bullish move that was witnessed during the second half of the week.

On the other hand, crude oil prices sustain their positive tone on Monday after last Friday's meeting of major oil producers heightened expectations of a possible extension to the supply-cut agreement. The barrel of West Texas Intermediate is now trading at $51.30, adding 1.3% on the day, and not allowing the USD/CAD pair to rise.

• WTI keeps pushing higher, in daily highs around $51.40

The economic calendar on Tuesday won't be offering any significant data from Canada. Analysts at ING note that the focal point of Canadian markets in the week will be BoC Governor Poloz's speech and press briefing on Wednesday.

• CAD: Poloz and GDP data major event risks - ING

Technical outlook

The RSI on the daily graph is moving sideways just a tad below the 50 mark, supporting the view of a near-term neutral outlook for the pair. On the downside, supports align at 1.2300 (psychological level), 1.2250 (20-DMA) and 1.2120 (Sep. 15 low). On the flip side, resistances could be seen at 1.2385 (Sep. 20 high), 1.2455 (50-DMA) and 1.2500 (psychological level).