The USDCAD pair, currently trading at 1.32220, is maintaining stability near the 1.3225 level following a boost in momentum due to weaker Canadian Retail Sales.
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- USD/CAD remains steady around the 1.3225 mark after gaining momentum from softer Canadian Retail Sales.
The pair currently trades last at 1.32220.
The previous day high was 1.3226 while the previous day low was 1.3153. The daily 38.2% Fib levels comes at 1.3198, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3181, expected to provide support.
The USD/CAD pair posts modest gains around the 1.3225 mark during the Asian session on Monday. The Loonie declines against the US Dollar following Friday’s release of Canadian Retail Sales. Market participants prefer to move to the sidelines during the busy week of economic data and await the Federal Reserve’s (Fed) rate decision.
On Friday, Statistics Canada revealed that Canadian Retail Sales MoM rose 0.2% compared to the 0.5% expected and 1.0% the previous month. Also, Retail Sales ex-autos fell short of expectations, with a 0.0% increase in May, against the consensus of 0.3% and a 1.2% increase in April. The softer Canadian Retail Sales data weighed on the CAD and lifted the USD/CAD pair.
The softer Canadian Retail Sales data weighed on the CAD and lifted the USD/CAD pair. This figure suggested that the economy is slowing in line with the Bank of Canada’s projections, and market participants anticipated that the Bank of Canada (BoC) will likely not see the need to raise rates further this year.
Meanwhile, the renewed tension between Russia and Ukraine might further tighten oil supplies. This in turn, might cap the upside in the USD/CAD pair and lift the commodity-linked Loonie.
On the other hand, US Retail Sales fell short of expectations, indicating consumer resilience, and housing market data fell after posting positive figures in May. On a positive note, the Unemployment Claims showed a solid figure. The number of people claiming unemployment benefits was lower than expected for the second week of July and registered the lowest reading since mid-May.
The anticipation for the Fed to raise rates after the July meeting increased to 28% from 15.9% last month, according to the CME FedWatch Tool. Market players will keep an eye on the monetary policy decision on Wednesday and Chair Jerome Powell’s press conference. Investors will take cues from Fed Chair Jerome Powell’s speech on whether the central bank will likely continue hiking rates. This key event will trigger volatility across financial markets.
Moving on, the Federal Reserve’s (Fed) policy decision will be a closely watched event. A rate hike of 25 basis points (bps) is already priced in. The interest rate decision could significantly impact the US Dollar’s dynamic and give the USD/CAD pair a clear direction.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.3225 at the time of writing. Pair opened at 1.3223 and is trading with a change of 0.02 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.3225 |
| 1 | Today Daily Change | 0.0002 |
| 2 | Today Daily Change % | 0.0200 |
| 3 | Today daily open | 1.3223 |
The pair is trading above its 20 Daily moving average @ 1.3223, below its 50 Daily moving average @ 1.3333 , below its 100 Daily moving average @ 1.3451 and below its 200 Daily moving average @ 1.3476
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3223 |
| 1 | Daily SMA50 | 1.3333 |
| 2 | Daily SMA100 | 1.3451 |
| 3 | Daily SMA200 | 1.3476 |
The previous day high was 1.3226 while the previous day low was 1.3153. The daily 38.2% Fib levels comes at 1.3198, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3181, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.3175, 1.3128, 1.3102
- Pivot resistance is noted at 1.3249, 1.3274, 1.3322
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3226 |
| Previous Daily Low | 1.3153 |
| Previous Weekly High | 1.3244 |
| Previous Weekly Low | 1.3120 |
| Previous Monthly High | 1.3585 |
| Previous Monthly Low | 1.3117 |
| Daily Fibonacci 38.2% | 1.3198 |
| Daily Fibonacci 61.8% | 1.3181 |
| Daily Pivot Point S1 | 1.3175 |
| Daily Pivot Point S2 | 1.3128 |
| Daily Pivot Point S3 | 1.3102 |
| Daily Pivot Point R1 | 1.3249 |
| Daily Pivot Point R2 | 1.3274 |
| Daily Pivot Point R3 | 1.3322 |
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