USD/CAD drops to fresh daily lows near 1.2070 on renewed USD weakness

USD/CAD broke below its daily trading range during the American session.
US Dollar Index retreats toward 90.00 area after latest US data.
WTI climbs above $70 following Wednesday's modest decline.

Eren Sengezer FXStreet

After spending the majority of the day in a very tight range around 1.2100, the USD/CAD pair lost its traction during the American trading hours and dropped to a daily low of 1.2068. As of writing, the pair was down 0.25% on the day at 1.2076.

Risk flows hurt USD

The data published by the US Bureau of Labor Statistics revealed on Thursday that annual inflation, as measured by the Consumer Price Index (CPI), rose to 5% in May from 4.2% in April. This reading came in higher than analysts' estimate of 4.7%. Additionally, the US Department of Labor reported that Initial Jobless Claims declined to 376,000 last week, compared to the market expectation of 370,000.

Although the initial market reaction allowed the greenback to preserve its strength against its rivals, the positive shift seen in the market sentiment made it difficult for the currency to continue to find demand.

With the S&P 500 opening decisively higher and notching a new all-time high, the US Dollar Index turned south and was last seen losing 0.08% on the day at 90.06.

On the other hand, the barrel of West Texas Intermediate (WTI) is up 0.6% on the day at $70.15, helping the commodity-sensitive loonie outperform its rivals and causing USD/CAD to stay in the negative territory.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2076
Today Daily Change	-0.0035
Today Daily Change %	-0.29
Today daily open	1.2111

Trends
Daily SMA20	1.2086
Daily SMA50	1.2282
Daily SMA100	1.2464
Daily SMA200	1.2744

Levels
Previous Daily High	1.2118
Previous Daily Low	1.2058
Previous Weekly High	1.2133
Previous Weekly Low	1.2007
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2095
Daily Fibonacci 61.8%	1.2081
Daily Pivot Point S1	1.2074
Daily Pivot Point S2	1.2037
Daily Pivot Point S3	1.2015
Daily Pivot Point R1	1.2133
Daily Pivot Point R2	1.2155
Daily Pivot Point R3	1.2192

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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