The US Dollar (USD) inched higher against the Canadian Dollar (CAD) on Thursday, increasing the price to more than 1.3200, following some major economic releases. The technical bias may remain bearish because the price printed a higher low in the recent upside move.
USD/CAD Technical Analysis
As of this writing, the pair is being traded around 1.3202, resistance can be seen coming ahead around 1.3225, the key horizontal resistance ahead of 1.3254, the trend line resistance and then 1.3354, the 61.8% Fib level as shown in the graph below.
Coming towards the downside, the pair may hit a support level around 1.3145, the major horizontal support ahead of 1.3000. the psychological number and then 1.3016, the low of July 19, 2019, as shown in the graph above. The technical bias may remain bearish as long as 1.3225, the major horizontal resistance level remains intact.
US Retail Sales Ex Autos Release
The US Census Bureau has recent;y published figures concerning the retail sales of the goods sold by various retail outlets. The data is taken on a sampling basis by selecting different types of goods and services from a representative shopping basket. It is to be remembered that the data doesn’t include the automobile sector and is only a tentative figure which may be subjected to a periodic review.
The retail sales release comprises of monthly data and considered as one of the key factors for predicting the consumer’s confidence. Generally speaking, a positive reading is known to have a bullish trend ahead for the US Dollar whereas a negative reading indicates a bearish market for the US Dollar.
Considering the price movement of the pair over the last few days, selling the pair around current levels may be a good decision in the short to medium term. The reason is its bearish moves over the last couple of days, it fell down significantly, and is likely to drop even more.