FXOpen
The US Dollar (USD) extended downside movement against the Canadian Dollar (CAD) on Friday, dragging the price of USD/CAD to less than 1.3100 following the release of Canadian retail sales news. The technical bias however remain bullish because of a Higher High and Higher Low in the recent wave.
Technical Analysis
As of this writing, the pair is being traded near 1.3085. A support may be noted around 1.3073, the 38.2% fib level ahead of 1.3047-3050, the confluence of 50% fib level and psychological number as demonstrated in the following four-hour chart.
On the upside, the pair is expected to face a hurdle near 1.3106, the 23.6% fib level ahead of 1.3159, the swing high of the last major upside rally. The technical bias will remain bullish as long as the 1.2934 support area is intact which is the swing low of the previous downside move.
Canada Retail Sales
Canadian retail sales rose for a fourth-consecutive month in August, beating expectations, driven by higher sales of new trucks and alcohol.
The value of Canadian retail sales increased 0.5% to a seasonally adjusted 43.62 billion Canadian dollars (about $33.2 billion) in August, Statistics Canada said Thursday.
Market expectations were for a 0.1% gain, according to economists at Royal Bank of Canada. Excluding motor-vehicle and parts sales, retail sales were flat in August compared with the previous month, at C$32.59 billion. Economists had expected sales excluding motor-vehicle and parts to rise 0.2% in the month.
Retail sales volume, which economists say offers a better gauge of economic activity, rose 0.7% in the month.
Trade Idea
Considering the overall outlook, selling the pair around current levels could be a good strategy in short to medium term if a daily candle closes below the 1.3050 support area.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Germany's DAX 40 Index Flying High Despite Pessimistic National Outlook
For a number of years now, there has been a lot of discourse over the current situation and the future of the German domestic economy.
From both inside Germany and globally, analysts, government officials, and corporate leaders have demonstrated a
Volatility in the Pound Is Rising, the Euro is Consolidating
GBP/USD
At the end of last week, the British currency fell sharply, testing a significant support level at 1.2300. The resumption of the downward trend for the pair became possible after some statements by British officials:
- On Wednesday,
The Price of Gold XAU/USD Shows Strongest Fall in Almost 2 Years
On Monday, the price of gold fell from USD 2,386 to USD 2,333 per ounce — this is the strongest drop in one day in almost 2 years, according to Bloomberg. On Tuesday morning in the Asian session, the