USD/CAD & Wholesale Sales: Further downside or can we see a bottom soon?
Today we have a very light economic calendar, where there are no major macro indicators to be released. The only one that we can highlight for this Monday's session comes from Canada, with the Wholesale Sales on its monthly basis reading and analysts are expecting a decline from 1.8% to 0.5%. This data has been performing with a bullish trend for the mid-term, but this decline should add bearish pressure on the CAD, at least into a medium impact.
The technical picture for USD/CAD at H4 chart is still very bearish and showing some interesting patterns, like as the formation of a lower low pattern. Currently, the Loonie is well consolidated below the 200 SMA and it performed a rebound above the support level of 1.2777. Next resistance is located at the 1.2905 level, where a breakout can open the doors to test a very strong resistance zone on 1.2976. However, if the pair has bearish momentum during this week, it can re-test the 1.2777 level.