USD/CAD drops to fresh multi-year lows below 1.2200

USD/CAD extended its slide after closing the red on Wednesday.
US Dollar Index looks to close below 91.00.
Focus shifts to April Nonfarm Payrolls (NFP) report from the US.

Eren Sengezer FXStreet

The USD/CAD pair stayed relatively calm around 1.2250 during the first half of the day but lost its traction in the American session and touched its lowest level since September 2017 at 1.2179. As of writing, the pair was losing 0.57% on a daily basis at 1.2195.

USD selloff continues ahead of Friday's key data releases

Amid a lack of significant macroeconomic data releases from Canada, the USD's market valuation continued to drive USD/CAD's movements. Additionally, the barrel of West Texas Intermediate (WTI) is moving sideways on Thursday, failing to provide a directional clue to the commodity-related CAD.

Earlier in the day, the data from the US showed that the weekly Initial Jobless Claims declined by 92,000 to 498,000. Although this reading failed to trigger a meaningful market reaction, it helped the market mood remain upbeat. With Wall Street's main indexes rising between 0.3% and 0.45%, the USD remains on the back foot. Currently, the US Dollar Index is down 0.3% on the day at 90.97.

On Friday, April jobs report from both the US and Canada will be watched closely by market participants. Investors expect Nonfarm Payrolls (NFP) in the US to increase by 978,00 and see the Unemployment Rate edging lower to 5.8% from 6%. A stronger-than-expected NFP reading could help the USD find demand ahead of the weekend. On the other hand, analysts' estimate points to a modest increase in the Canadian Unemployment Rate to 7.8% from 7.5%.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2194
Today Daily Change	-0.0073
Today Daily Change %	-0.60
Today daily open	1.2267

Trends
Daily SMA20	1.2446
Daily SMA50	1.2525
Daily SMA100	1.263
Daily SMA200	1.2886

Levels
Previous Daily High	1.2312
Previous Daily Low	1.2252
Previous Weekly High	1.2491
Previous Weekly Low	1.2266
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2275
Daily Fibonacci 61.8%	1.2289
Daily Pivot Point S1	1.2242
Daily Pivot Point S2	1.2217
Daily Pivot Point S3	1.2181
Daily Pivot Point R1	1.2302
Daily Pivot Point R2	1.2337
Daily Pivot Point R3	1.2363

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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