Forex USD/CAD

Forex Trading Technical Analysis (USD/CAD) – October 24, 2019

The United States Dollar (USD) inched higher against the Canadian Dollar (CAD) on Thursday, increasing the price to more than 1.3000, following some major economic releases. The technical bia might remain bearish because the price marked a higher lown in the recent upside move. 

USD/CAD Technical Analysis

As of this writing, the pair is being traded around 1.3078, followed by a resistance which may come across around 1.3168, the major horizontal resistance level which is likely to resist the price to stay below the said level. Another resistance may hit the price at 1.3263, the 38.2% ahead of 1.3397, the trendline resistance as shown in the graph below. 

USDCAD

Coming towards the downside, the price may receive support around 1.2961, the 61.8% Fib level support and might take a reversal from there. However,  1.2700, is the psychological number that stands next to the Fib level support may help the price to stay above the said level. Finally, there comes another support level 1.2527, the low of Apri 17 2018, as shown in the graph above. The technical bias may remain bearish as long as the 1.3230, the key horizontal resistance level remains intact.

Canadian Retail Sales News

The “Statistics Canada” has recently released data concerning retail sector sales. It comprises of figures showing all products sold by retail outlets in the due course of time. The data is collected on a sample basis after considering all types of retail stores either big or small. The retail sales index is often taken as an indicator of consumer confidence. It shows the performance of the retail sector in the short term. Generally speaking, a high reading is considered as a bullish market for the Canadian Dollar and vice versa. 

Conclusion

Keeping in view the price behavior over the past few days, selling the pair around current levels may be a wise decision in the short to medium term. Since the trend seems to be bearish, therefore, holding a long position may not turn out to be fruitful.

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