Key Points
- The US dollar after trading as high as 1.3588 against the Canadian dollar started correcting lower.
- The USDCAD pair broke a bullish trend line formed on the hourly chart, and currently approaching another trend line at 1.3500.
- Today in the US, the Retails Sales figure will be released by the US Census Bureau.
- The market is aligned for an increase of 0.6% in Oct 2016, compared with the previous month.
USDCAD Technical Analysis
The US Dollar was in an uptrend until it found sellers near 1.3580-90 against the Canadian dollar. The USDCAD pair is currently correcting lower, and already broke a bullish trend line formed on the hourly chart.
However, the pair is heading towards another bullish trend line, which is likely to act as a support area. The 38.2% Fib retracement level of the last wave from the 1.3344 low to 1.3588 high is also around the same trend line.
So, as long as the pair is above the trend line support at 1.3500, it may gain bids and move higher once again.
US Retails Sales
Today in the US, the Retail Sales, which measures the total receipts of retail stores, and reflect the rate of changes of such sales will be released by the US Census Bureau.
The market is aligned for an increase of 0.6% in Oct 2016, compared with the previous month. Moreover, the goods sold by retailers based on a sampling of retail stores of different types and sizes except the automobile sector is forecasted to increase by 0.4% in Oct 2016, compared with the previous month. The market is expecting an improvement in the US retail sector, but a bit less than the last month.
Overall, the USDCAD pair remains above a major support at 1.3500, which may hold the downside move and push the price higher.
