At the price of 1.34484 for USDCAD, there has been a observation of an increase in buying activity close to the level of 1.3430, following the release of Canada’s Retail Sales data which showed a stronger performance when excluding automobile sales.

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• USD/CAD discovers buying interest near 1.3430 after Canada’s Retail Sales excluding automobiles remained stronger.

The pair currently trades last at 1.34484.

The previous day high was 1.3524 while the previous day low was 1.3453. The daily 38.2% Fib levels comes at 1.3497, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.348, expected to provide resistance.

The USD/CAD pair finds interim support near 1.3430 after Statistics Canada reported mixed Retail Sales report for July. Consumer spending expanded at a slower pace of 0.3% vs. expectations of 0.4%. In June, Retail Sales expanded nominally by 0.1%.

Retail Sales excluding automobiles expanded strongly by a full one percent, doubling expectations of 0.5%. The economic data was contracted by 0.7% in June. Scrutiny of the Retail Sales report shows that demand for automobiles remained weak. Households postponed demand for automobiles to avoid higher interest obligations.

The Canadian Dollar remains strong as the oil price is preparing for a fresh upside above the immediate resistance of $91.00. More upside in the oil price is anticipated due to deepening supply concerns and expectations of an end to the global rate-hike cycle. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.

This week, Canada’s inflation data for August remained mixed. Headline Consumer Price Index (CPI) expanded at a higher pace of 0.4% vs. expectations of 0.2% due to rising energy prices. The Bank of Canada (BoC) takes core inflation into account for the monetary policy framework, therefore, the impact of the recovery in gasoline prices would be limited.

Meanwhile, the US Dollar struggles to find a direction as investors remain mixed about whether the Federal Reserve (Fed) will keep interest rates unchanged in the remainder year or will hike one more time. As per the CME Fedwatch tool, traders see a 71% chance for interest rates remaining steady at 5.25%-5.50% in the November monetary policy meeting.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3447 at the time of writing. Pair opened at 1.3484 and is trading with a change of -0.27 % .

The pair is trading below its 20 Daily moving average @ 1.3558, above its 50 Daily moving average @ 1.3436 , above its 100 Daily moving average @ 1.3398 and below its 200 Daily moving average @ 1.3463

The previous day high was 1.3524 while the previous day low was 1.3453. The daily 38.2% Fib levels comes at 1.3497, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.348, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.345, 1.3416, 1.3379
• Pivot resistance is noted at 1.352, 1.3558, 1.3591

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