Canadian dollar gains 0.5% against the greenback Trades in a range of 1.2838 to 1.2924 Price of U.S. oil settles 2.3% higher Canadian 10-year yield eases 1.9 basis points TORONTO, Dec 22 (Reuters) - The Canadian dollar rallied against the greenback on Wednesday as a pickup in U.S. consumer confidence bolstered investor sentiment, but analysts were cautious about the loonie being out of danger after it fell to a one-year low earlier this week. The loonie was trading 0.5% higher at 1.2842 to the greenback, or 77.87 U.S. cents, after trading in a range of 1.2838 to 1.2924. On Monday, the currency touched its weakest level since December 2020 at 1.2963. "It"s really a sentiment story," said Amo Sahota, director at Klarity FX in San Francisco. "Equities have not immediately reversed the gains from yesterday." Wall Street pushed higher for a second day after the consumer confidence uptick suggested the U.S. economy would continue to expand in 2022. read more A South African study suggesting reduced risks of hospitalization and severe disease in people infected with the Omicron coronavirus variant versus the Delta one added to support for stocks. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to movement in risk appetite.