USD/CAD goes into consolidation after renewing multi-year low at 1.2011

• USD/CAD trades in the negative for the third straight day.
• USD selloff remains intact ahead of mid-tier data releases.
• Rising crude oil prices continue to support CAD.

The USD/CAD pair closed the first day of the week in the red and extended its slide to a fresh six-year low of 1.2011 before going into a consolidation phase. As of writing, the pair was down 0.23% on a daily basis at 1.2040.

WTI continues to push higher, USD stays on the back foot

Rising crude oil prices on the back of heightened hopes for a steady recovery in global energy demand continue to provide a boost to the commodity-related loonie. At the moment, the barrel of West Texas Intermediate (WTI) is trading at its highest level since early March at $66.75, rising 0.6% on the day.

On the other hand, the unabated selling pressure surrounding the greenback allows the bearish momentum to remain intact. The US Dollar Index touched its lowest level since February 25 at 89.75 and is currently down 0.4% at 89.82. In the absence of significant fundamental drivers, the upbeat market mood is making it difficult for the USD to find demand.

Later in the session, April Building Permits and Housing Starts from the US will be looked upon for fresh impetus. Meanwhile, the S&P 500 Futures and the Nasdaq Futures are up 0.3% and 0.7%, suggesting that risk flows are likely to continue to dominate the financial markets in the second half of the day.

Technical levels to watch for