Key Points
- The US Dollar after trading as low as 1.2526 found support against the Canadian Dollar and moved higher.
- There was a break above a major bearish trend line with resistance at 1.2580 on the hourly chart of USDCAD.
- Recently in Canada, the Retail Sales for June 2017 was released by the Statistics Canada.
- The outcome was below the forecast, as there was a rise of 0.1%, less than the forecast of +0.3% (MoM).
USDCAD Technical Analysis
The US Dollar was in a super downtrend from the 1.2775 level against the Canadian Dollar. Later, the USDCAD pair formed support near 1.2520 and started an upside move.
The pair traded higher and broke the 23.6% Fib retracement level of the last decline from the 1.2691 high to 1.2526 low and the 21 hourly simple moving average.
More importantly, there was a break above a major bearish trend line with resistance at 1.2580 on the hourly chart of USDCAD. The pair is currently trading near the 38.2% Fib retracement level of the last decline from the 1.2691 high to 1.2526 low, and might break it soon for more gains.
Canada’s Retail Sales
Recently in Canada, the Retail Sales for June 2017 was released by the Statistics Canada. The market was positioned for a minor rise of 0.3% compared with the previous month.
The actual result was below the forecast, as there was a rise of 0.1%, less than the forecast of +0.3%. It was also lower than the last revised increase of 0.5%. On the other hand, the Core Retail Sales rose 0.7% in June 2017, whereas the market was not looking for any growth. The report stated that:
Sales at clothing and clothing accessories stores rose 2.7%. Higher sales at clothing stores (+3.3%) and shoe stores (+5.3%) both followed decreases in May. Jewellery, luggage and leather goods stores sales (-3.7%) were down for the first time since February 2017.
Overall, the USDCAD pair has moved into the bullish zone and might soon break the 1.2600 handle in the short term.
