USDCAD – US Dollar Approaching Crucial Support Vs Canadian Dollar
- The US Dollar moved towards 1.3650 against the Canadian Dollar before finding resistance.
- The USDCAD pair moved down, and broke a bullish trend line at 1.3557 on the hourly chart.
- Recently in Canada, the Retail Sales for Feb 2017 (MoM) was released by the Statistics Canada.
- The outcome was below the forecast, as there was a decline of 0.6% in sales in Feb 2017.
USDCAD Technical Analysis
The US Dollar moved nicely and traded towards 1.3650 against the Canadian Dollar. The USDCAD pair traded as high as 1.3647 where it faced offers, and started a downside move.
The pair traded lower, and broke the 23.6% Fib retracement level of the last wave from the 1.3411 low to 1.3647 high. It also cleared the 21 hourly simple moving average, and a bullish trend line at 1.3557 on the hourly chart.
The pair is currently heading lower, and may test the 61.8% Fib retracement level of the last wave from the 1.3411 low to 1.3647 high where it can find support.
Canadian Retail Sales
Recently in Canada, the Retail Sales for Feb 2017 was released by the Statistics Canada. The forecast was lined up for the sales to decline by 0.1% in Feb 2017, compared with the previous month.
The result was below the forecast, as there was a decline of 0.6% in sales in Feb 2017. The Retail Sales ex Autos was better, as it declined by 0.1%, less than the forecast of -0.3%. The report added that “Sales at motor vehicle and parts dealers (-1.8%) were down for the first time in seven months, largely reflecting weaker sales at new car (-1.7%) and other motor vehicle (-5.5%) dealers. Following gains in January, sales were 1.3% lower at used car dealers”.
Overall, the USDCAD pair may decline towards 1.3500 where it is likely to find support in the near term.
– Guest Post Submitted By Aayush Jindal from the FXTimes Team