USD/CAD extends daily slide to 1.2570 area as USD selloff continues

USD/CAD remains on track to snap two-day winning streak.
US Dollar Index is testing 92.00 in American session.
10-year US Treasury bond yield is down more than 2%.

Eren Sengezer FXStreet

After spending the first half of the day in a narrow channel around 1.2600, the USD/CAD pair came under renewed bearish pressure and touched a daily low of 1.2563. As of writing, the pair was losing 0.28% on a daily basis at 1.2572.

USD selloff remains intact

The USD's market valuation remains the primary driver of USD/CAD's movements on Thursday. With the benchmark 10-year US Treasury bond yield losing more than 2% on the day, the US Dollar Index (DXY) slumped to its lowest level in more than two weeks at 91.99 and was last seen falling 0.42% on the day at 92.04.

The only data from the US showed that the weekly Initial Jobless Claims rose by 16,000 to 744,000 in the week ending April 3. This reading came in worst than analysts' estimate of 680,000 but was largely ignored by market participants.

While speaking at a conference organized by the International Monetary Fund (IMF), FOMC Chairman Jerome Powell reiterated that they see upward pressure on prices likely to be temporary this year. Powell further noted that they will continue to support the economy and didn't help the greenback to stage a recovery.

On the other hand, the barrel of West Texas Intermediate (WTI) continues to fluctuate in a tight range below $60 on Thursday, allowing USD/CAD to continue to react to movements in the DXY.

On Friday, the Canadian labour market report and the Producer Price Index (PPI) data from the US will be looked upon for fresh impetus.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2574
Today Daily Change	-0.0035
Today Daily Change %	-0.28
Today daily open	1.2609

Trends
Daily SMA20	1.254
Daily SMA50	1.2631
Daily SMA100	1.2719
Daily SMA200	1.2993

Levels
Previous Daily High	1.2635
Previous Daily Low	1.2563
Previous Weekly High	1.2647
Previous Weekly Low	1.2528
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2607
Daily Fibonacci 61.8%	1.259
Daily Pivot Point S1	1.257
Daily Pivot Point S2	1.253
Daily Pivot Point S3	1.2498
Daily Pivot Point R1	1.2641
Daily Pivot Point R2	1.2674
Daily Pivot Point R3	1.2713

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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