FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

The USD/CAD nearly formed a doji day, moving lower initially but bouncing near support as the dollar gained traction. Strong U.S. Treasury yields following the better than expected manufacturing data helped buoy the greenback. Canadian retail sales fell sharply also taking some of the wind out of the sails of the loonie. IHS Markit reported its flash U.S. manufacturing PMI rose to a reading of 62.6 in June, more than the 61.5 expected.

Technical Analysis

The USD/CAD rebounded after initially moving lower, bouncing at support which is seen near the 10-day moving average at 1.2262. Resistance is seen near the former breakout trend line near 1,2364. Additional resistance is seen near the 100-day moving average at 1.2410. The 10-day moving average crossed above the 50-day moving average, which means that a short-term uptrend is now in place. Short-term momentum is negative. The fast stochastic generated a crossover sell but the lower trajectory is receding, reflecting consolidation. Medium-term momentum is positive but decelerating. The MACD (moving average convergence divergence) histogram is printing in positive territory with a declining trajectory which points to consolidation.

Advertisement
Know where USD/CAD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Advertisement

Canadian Retail Sales Drop

The combination of strong U.S. data and weak Canadian data conspired to weigh on loonie. Canadian retail sales fell in April due to nationwide lockdown. Retail sales decreased 5.7% in April to 54.77 billion Canadian dollars, according to Statistics Canada. Expectations were for April retail sales to fall 5.1% after surging 3.6% in March and 5.8% in February. Statistics Canada also reported that Retail Sales on a volume terms declined 5.6% in April.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker