USDCAD slumps to five-week lows on risk-on sentiment and after the release of the Canadian retail sales data. Canada Retail Sales came in at 18.7% below the forecasts of 20% in May. The April reading was at 19.1%. The Retail Sales excluding Autos registered in at 10.6% below the expectations of 12% in May. The Canada New Housing Price Index came in at 0.1%, below the forecasts of 0.2% in June.
From the USA the Chicago Fed National Activity Index came in at 4.11, topping the expectations of 3.24 in June. The Redbook Index dropped to 1.9% on July 17 from the previous 3%, while the yearly reading fell from previous -5.5% to -7.5% on July 17.
The Canadian dollar is getting strong support today from the crude oil price that hits four-month highs. Coronavirus vaccine hopes increase investors confidence that the global economic recovery will accelerate if the vaccine gets approval.
USDCAD Daily Technical Analysis
The USDCAD is 0.57% lower at 1.3457, hitting the lowest level since June 11. The bears today managed to break below the 200-day moving average, and now they are in control of the pair targeting lower levels.
On the downside, the first support for USDCAD stands at 1.3439 the daily low. If the USDCAD pair breaks below 1.3439, the next support zone will be met at 1.3394 the low from June 11. The next target for USD bears would be met at 1.3315 the low from June 10.
On the other hand, the immediate hurdle for USDCAD stands at 1.3536 the daily top. If USDCAD moves higher, the next resistance zone will be met at 1.3602 the high from yesterday’s trading session. The next hurdle for USDCAD is at 1.3649 the 50-day moving average.