USD/CAD ahead Core Retail Sales: Dynamic support in focus
Today at 12:30 GMT will be published the Canadian's core retail sales on a monthly basis (July) and market's analysts are expecting an increase from -0.8% to 0.5%. This is a key macro indicator to measure consumer confidence in Canada and we should remind that the retail sales came lower during June's release, which was well below the forecasts. Another factor to have in mind is the current OPEC discussions in Argelia that are driving currently the Oil and CAD pairs are closely watching for those moves.
The technical picture at H4 chart for USD/CAD is strongly bearish, helped by the recent US dollar weakness lived after FOMC's meeting. However, the Loonie is finding support at the 1.3005 level, where it converges with the 200 SMA, providing some kind of dynamic support across the board. If data comes above the expectations, then the pair may resume the bearish bias and it could test the support level of 1.2951, while the other scenario can boost the USD/CAD pair to test the resistance level of 1.3135.