USD/CAD: daily update
USD/CAD slid today to the lowest level since June 19. The pair’s now at support line connecting May and June lows and the 100-day MA in the 1.0270 area.
On the one hand, the pair has already reached targets of the bearish flag. In addition, there’s divergence on H4 MACD and RSI. On the other hand, the picture on the daily chart allows more declines to 1.0235 (38.2% Fibo of the advance from September to July), 1.0217 (bottom of the daily Ichimoku Cloud), 1.0180 (200-day MA) and 1.0140 (support line from September). Resistance lies at 1.0340, 1.0380 and 1.0420.
Canadian dollar strengthened on encouraging retail sales data. TD: “In the next few weeks, through tame summer trading, we could see more of a grind higher for the Canadian dollar on some of these positive Canadian data trends.” The gain in retail sales follows other signs of resilience in consumer spending such as stronger home construction. There will be no more important data releases in Canada this week, so keep an eye on the US figures.
Chart. Daily USD/CAD