USD/CAD continues to trade sideways below 1.2150 after US data

USD/CAD struggles to find direction following Wednesday's rebound.
US Dollar Index stays flat below 91.00 after mid-tier data releases.
WTI trades deep in the red below $65 on Thursday.

Eren Sengezer FXStreet

The USD/CAD pair rose to a daily high of 1.2157 on Thursday but struggled to preserve its bullish momentum. As of writing, the pair was trading at 1.2130, where it was virtually unchanged on a daily basis.

The broad-based USD strength on the back of strong Consumer Price Index data allowed USD/CAD to stage a rebound on Wednesday. Wİth the benchmark 10-year US Treasury bond yield rising more than 4% on the back of heightened inflation, the US Dollar Index rose nearly 0.7%.

Investors pay little to no attention to latest US data

On Thursday, the US Bureau of Labor Statistics reported that the annual Producer Price Index (PPI) jumped to 6.2% in April from 4.2% in March. This reading came in higher than the market expectation of 5.9% but failed to trigger a meaningful market reaction. Additionally, the weekly Initial Jobless Claims declined to 473,000 from 507,000. After these data releases, the DXY stays flat on the day near 90.70.

On the other hand, the barrel of West Texas Intermediate is losing 2% at $64.30 on Thursday, making it difficult for the commodity-sensitive CAD to attract investors.

In the meantime, the S&P 500 Futures, which spent a large portion of the day in the negative territory, is currently up 0.3%, suggesting that the USD could struggle to find demand if the market mood improves after the opening bell.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2131
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.2135

Trends
Daily SMA20	1.2342
Daily SMA50	1.2472
Daily SMA100	1.2594
Daily SMA200	1.2855

Levels
Previous Daily High	1.2138
Previous Daily Low	1.2046
Previous Weekly High	1.2352
Previous Weekly Low	1.2122
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2103
Daily Fibonacci 61.8%	1.2081
Daily Pivot Point S1	1.2075
Daily Pivot Point S2	1.2015
Daily Pivot Point S3	1.1983
Daily Pivot Point R1	1.2167
Daily Pivot Point R2	1.2198
Daily Pivot Point R3	1.2258

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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