Loonie extends recovery after solid Canada’s retail sales data
The loonie advanced against US dollar on Friday, following better than expected Canada retail sales (Sep core 0.2% vs 0.1% f/c) but gains were so far limited by top of falling daily cloud (1.3256).
The USDCAD pair is holding in red for the second straight day, following double upside rejection on Wed/Thu (1.3327/25).
Today’s post-data acceleration broke below 200DMA (1.3275) and looks for further bearish signals on break through daily cloud (1.3256/38) and potential violation of pivotal Fibo support at 1.3218 (38.2% of 1.3041/1.3327).
Daily indicators (momentum, stochastic, RSI) turned south and support negative scenario.
Weekly chart shows flat momentum and weekly candle with long upper shadow (although green) which signals strong upside rejection that may also contribute to bearish signals.
Traders focus on US PMI data for fresh signals.
Res: 1.3275; 1.3290; 1.3327; 1.3345
Sup: 1.3254; 1.3238; 1.3218; 1.3200