Loonie Remains Range Bound Ahead of Key Releases

The US Dollar (USD) inched lower against the Canadian Dollar (CAD) on Wednesday, decreasing the price of USD/CAD to less than 1.3600 ahead of the Canada’s retail sales news. The technical bias remains bullish because of a higher high in the recent upside move.

Technical Analysis

As of this writing, the pair is being traded around 1.3562. A hurdle can be seen near 1.3573, the confluence of upper trendline resistance as well as 23.6% fib level ahead of 1.3604, the pink trendline resistance and then 1.3625, the high of the last major upside rally as demonstrated in the given below hourly chart.

On the downside, a support may be seen near 1.3542, the 38.2% fib level ahead of 1.3516, the confluence of 50% fib level as well as short term horizontal support and then 1.3450, the psychological number. The technical bias shall remain bullish as long as the 1.3450 support zone is intact.

How USDCAD Reacted on Past Retail Sales Reports

The USD/CAD didn’t show any noticeable movement after the release of Canada’s retail sales reports if we look at the last two month’s data. This is because the retail sales news is considered a medium-level volatile data and the last two reports were in line with the projections of economists.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels can be a good strategy in short to medium term.

What Assets to Trade after Retail Sales News

It is recommended to trade USDCAD and Crude Oil amid Canada’s retail sales news. In addition, CAD/JPY, EUR/CAD and GBP/CAD can also be traded following the retail sales release.

 

usmanahmed7290@gmail.com'

Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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