Upbeat Canada’s retail sales push loonie to one-month high
Better than expected Canada’s retail sales (Mar 1.1% vs 1.0% f/c / Core 1.7% vs 0.9% f/c) pushed loonie to new one-month high at 1.3357.
USDCAD’s fresh bearish acceleration broke through 55SMA support (1.3394), former lows (1.3380/76) and pivotal support at 1.3368 (Fibo 61.8% of 1.3273/1.3520 upleg) to stall on approach to daily cloud top (1.3346).
The pair is in red for the fourth straight day and maintaining strong bearish momentum, with upbeat data coming as a catalyst.
Bears need close below cracked Fibo support at 1.3368 to generate negative signal for extension lower and penetration of daily cloud.
Broken 55SMA should ideally cap upticks and maintain bearish stance, while extension above 30SMA (1.3422) would question bears.
Res: 1.3394; 1.3422; 1.3445; 1.3462
Sup: 1.3368; 1.3357; 1.3346; 1.3332