CANADA FX DEBT-C$ steadies near key technical level ahead of U.S. mid-terms

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Loonie trades in a range of 1.3477 to 1.3526

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Price of U.S. oil falls 0.8%

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Canadian bond yields ease across curve

By Fergal Smith

TORONTO, Nov 8 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday, with the currency holding near a key technical level as investors eyed U.S. midterm elections and awaited a key U.S. inflation report later this week.

The loonie was trading nearly unchanged at 1.3494 to the greenback, or 74.11 U.S. cents, after moving in a range of 1.3477 to 1.3526.

"USD-CAD is tepidly probing below the key 1.35 mark which marks the neckline of a H&S (head and shoulders) formation on daily charts," Bipan Rai, North America head of FX strategy at CIBC Capital Markets, said in a note.

Penetration of the neckline of a head and shoulders formation can sometimes signal the reversal of a market trend.

"This is predominantly a USD story for now, as we envisage price action will remain hinged on the U.S. CPI print later this week," Rai added.

U.S. inflation data for October, due on Thursday, could offer clues on the outlook for further outsized interest rate hikes by the Federal Reserve.

The Bank of Canada has also been hiking aggressively. As the central bank considers raising interest rates at a slower pace, it is focusing on inflation measures that are more timely than typically observed, which could help it avoid tightening beyond the level needed to subdue price pressures.

The U.S. elections on Tuesday will determine control of Congress. It could lead to policy gridlock, including less fiscal stimulus.

The price of oil, one of Canada's major exports, slipped as worsening COVID-19 outbreaks in China heightened fears of lower fuel demand. U.S. crude prices were down 0.8% at $91.02 a barrel.

Canadian government bond yields were lower across the curve, with the 10-year easing 3.9 basis points to 3.562%. (Reporting by Fergal Smith; editing by Jonathan Oatis)