Loonie rallied strongly after upbeat Canadian data

The Loonie surged against the US dollar around hundred pips on Friday after upbeat Canadian economic data on Friday
Annualized inflation rose 2.5% in June, beating forecast for 2.4% rise while core CPI (which excludes gasoline was up 0.1% from the previous month.
Canadian retail sales also showed upbeat result on 2.0% rise in May vs forecasted increase of 1.1%.
At the same time, the US dollar stands at the back foot on last night comments from President Trump who expressed his displeasure on high dollar price as well as Fed’s attempts to continue gradual interest rate rise.
Today’s USDCAD fall weakens near-term structure as momentum turned negative and a double-top formed on daily chart, generating negative signal.
The pair is on track for strong bearish daily close and also forming a bearish outside day, which marks another negative signal.
Bearish acceleration retraced 76.4% of 1.3064/1.3289 recovery leg and pressures support at 1.3110, the last obstacle towards higher base at 1.3065 and psychological 1.30 support, also top of rising daily cloud.
Broken 10SMA (1.3161) is expected to keep the upside protected.|

Res: 1.3161; 1.3181; 1.3227; 1.3266
Sup: 1.3110; 1.3065; 1.3045; 1.3000