USD/CAD stays quiet around mid-1.34s

The USD/CAD pair trades in a very tight 30-pip range on Monday and struggles to determine a short-term direction amid a lack of fresh fundamental drivers As of writing, the pair is trading at 1.3445, losing 0.18%, or 24 pips, on the day.

After easing towards the 97 handle, the US Dollar Index recovered a portion of its daily losses and limited the losses of the pair despite rising crude oil prices. Although the barrel of West Texas Intermediate is trading at $46.50, recording a daily gain over 1%, the loonie is having a difficult time gaining strength against the greenback.

In addition to and the National Balance Sheet Accounts data for the Q1 from Canada, the FOMC will release its decisions on the monetary policy on Wednesday. Until then, the pair is likely to remain in a horizontal range. In fact, since OPEC's decision to extend its supply cut deal for nine more months in late May, the pair has been stuck in a 150-pip range.

• Canada: National Balance Sheet Accounts data will be watched closely – RBC CM

Technical outlook

Although the RSI on the daily graph remains below the 50 handle, it moves sideways, suggesting that the pair's short-term outlook is neutral. 1.3480 (10-DMA/20-DMA) could be seen as the first technical hurdle for the pair ahead of 1.3550 (50-DMA) and 1.3600 (psychological level). On the flip side, supports align at 1.3390 (may 25 low) 1.3360 (200-DMA) and 1.3300 (psychological level).