(Adds strategist quotes and details throughout; updates prices) * Loonie touches a 6-year high at 1.2013 * Price of U.S. oil settles 1.2% lower * Canada"s 10-year yield eases 1.4 basis points to 1.565% By Fergal Smith TORONTO, May 18 (Reuters) - The Canadian dollar steadied against its broadly weaker U.S. counterpart on Tuesday, pulling back from an earlier six-year high as oil prices turned lower and technical selling of the currency kicked in near a key psychological level. The loonie was trading nearly unchanged at 1.2060 to the greenback, or 82.92 U.S. cents, having touched its strongest level since May 2015 at 1.2013. "Big-dollar weakness and oil strength pushed us to a new six-year low in USDCAD earlier today," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. "We ran into technical support at 1.2000 and temporarily ran out of momentum this morning." Round numbers often serve as important support and resistance levels for traders. The U.S. dollar hit its lowest level against a basket of currencies since late February on waning fears that inflation spikes could prompt the Federal Reserve to raise interest rates sooner than anticipated. U.S. crude futures touched the highest since March at $67.01 a barrel but then settled at $65.49, down 1.2% on the day, after media reports said the United States and Iran have made progress on reviving a deal restricting Iran"s nuclear weapons development. "The positive news on a potential deal that would facilitate Iran"s exports of oil pushed crude and CAD lower," Anderson said. Canadian exporters are adjusting their currency hedges and buying the loonie at stronger levels, in a sign market players are growing more confident that the currency"s commodity-linked surge this year will stick, foreign exchange dealers say. The province of Alberta"s 10-year yield eased 1.9 basis points to 2.118%, tracking the move in other provincial bonds despite a downgrade of its debt rating on Monday by S&P Global ratings to A from A+. Canada"s 10-year yield eased 1.4 basis points to 1.565%. (Reporting by Fergal Smith; Editing by Nick Zieminski and Marguerita Choy) Our Standards: The Thomson Reuters Trust Principles.