USD/CAD drops below 1.2500 amid persistent USD weakness

USD/CAD continues to push lower ahead of the weekend.
US Dollar Index stays in the negative territory below 91.60.
Investors await preliminary UoM Consumer Sentiment Index for April.

Eren Sengezer FXStreet

After spending the Asian trading hours around 1.2550, the USD/CAD pair met a modest bearish pressure and dropped to a daily low of 1.2493 in the early American session. As of writing, the pair was down 0.35% on a daily basis at 1.2498.

USD selloff remains intact

The broad-based USD weakness forces USD/CAD to remain on the back foot ahead of the weekend. Despite a technical correction witnessed in the 10-year US Treasury bond yield, the US Dollar Index stays in the red around 91.55 on Friday.

The only data from the US showed that Housing Starts and Building Permits increased by 19.4% and 2.7% on a monthly basis in March but these figures were largely ignored by market participants. Later in the session, the University of Michigan will release the preliminary Consumer Sentiment Index data for April.

On the other hand, the barrel of West Texas Intermediate is posting small daily gains around mid-$63, helping the commodity-related CAD preserve its strength.

In the meantime, Wall Street's main indexes look to start the day higher with the S&P 500 Futures rising 0.25% ahead of the opening bell. If risk flows continue to dominate the financial markets in the remainder of the day, the greenback could have a difficult time finding demand.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2502
Today Daily Change	-0.0042
Today Daily Change %	-0.33
Today daily open	1.2544

Trends
Daily SMA20	1.2562
Daily SMA50	1.2598
Daily SMA100	1.2689
Daily SMA200	1.2962

Levels
Previous Daily High	1.2559
Previous Daily Low	1.2477
Previous Weekly High	1.2635
Previous Weekly Low	1.2502
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2528
Daily Fibonacci 61.8%	1.2508
Daily Pivot Point S1	1.2494
Daily Pivot Point S2	1.2445
Daily Pivot Point S3	1.2412
Daily Pivot Point R1	1.2576
Daily Pivot Point R2	1.2608
Daily Pivot Point R3	1.2658

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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