#USDCAD @ 1.37317 has slipped firmly to near 1.3720 amid subdued US Dollar and upbeat Canadian Retail Sales data. (Pivot Orderbook analysis)

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• USD/CAD has slipped firmly to near 1.3720 amid subdued US Dollar and upbeat Canadian Retail Sales data.
• Higher Canadian Retail Sales have raised hopes for a resumption of a policy-tightening spell by the BOC.
• Oil price is eyeing more upside as Russia can attract more sanctions.

The pair currently trades last at 1.37317.

The previous day high was 1.3804 while the previous day low was 1.3708. The daily 38.2% Fib levels comes at 1.3767, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3745, expected to provide resistance.

The USD/CAD pair has printed a fresh day low at 1.3725 in the Asian session. The downside move in the Loonie asset is backed by a subdued performance from the US Dollar Index (DXY) and rising hopes for a resumption of a policy-tightening spell by the Bank of Canada (BoC) after the release of robust Canadian Retail Sales data.

S&P500 futures have generated solid gains in the Asian session as the consideration of expanding the emergency lending program by US authorities has infused confidence among the market participants. The US Dollar Index (DXY) is struggling to find strength as the street is cheering the expectations of termination in the policy-tightening spell by the Federal Reserve (Fed). The USD Index is defending the 103.00 support, however, the downside looks favored.

Expectations for a halt in the rate-hiking spell by the Fed are deepening amid rising credit tightening conditions by US banks after turmoil. Banks are having more precautions while disbursing advances. It looks like financial institutions have heavily faced the consequences of a blood fight against stubborn inflation.

On the Canadian Dollar front, upbeat Retail Sales (Feb) data has bolstered the odds of a resumption of the policy-tightening spree by the Bank of Canada (BoC). The year started with the announcement of a halt in rate hikes by the BoC as it considered the current monetary policy restrictive enough to contain inflation.

Monthly Canadian Retail Sales (Feb) jumped to 1.4%, higher than the consensus of 0.7%, and a flat performance observed earlier. Robust demand by Canadian households might force firms to hike prices for goods and services offered, which could propel the need for further rate hikes by the BoC.

On the oil front, the oil price is juggling in a narrow range above $69.00. The black gold is gathering strength for extending the upside as Russia can attract more sanctions. Russian President Vladimir Putin has conveyed his intensions to planning stations for tactical nuclear weapons in Belarus.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3726 at the time of writing. Pair opened at 1.3743 and is trading with a change of -0.12 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3702, 50 SMA 1.3529, 100 SMA @ 1.3513 and 200 SMA @ 1.3359.

The previous day high was 1.3804 while the previous day low was 1.3708. The daily 38.2% Fib levels comes at 1.3767, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3745, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3699, 1.3655, 1.3602
• Pivot resistance is noted at 1.3796, 1.3849, 1.3893

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