The USDCAD pair, currently at 1.31700, is showing a lack of momentum below the 1.3200 level as traders turn their attention to the upcoming release of Canadian Retail Sales data.

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• USD/CAD turns lackluster below 1.3200 as the focus shifts to Canadian Retail Sales data.

The pair currently trades last at 1.31700.

The previous day high was 1.3194 while the previous day low was 1.312. The daily 38.2% Fib levels comes at 1.3166, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3148, expected to provide support.

The USD/CAD is demonstrating a non-directional performance below the round-level resistance of 0.3200 in the London session. The Loonie asset is awaiting the release of the Canadian Retail Sales data for May for meaningful action.

S&P500 futures have generated decent gains in Europe, portraying that overall negative market sentiment has started easing now. US equities are under pressure as corporate earnings season has kicked off. The US Dollar Index (DXY) is making efforts for stability above the crucial resistance of 101.00.

A power-pack action is expected in the Canadian Dollar as Statistics Canada will report monthly Retail Sales data for May at 12:30 GMT. As per the estimates, the economic data expanded at a pace of 0.5%, which is slower than the figure recorded for April at 1.1%. Retail Sales excluding automobiles are seen increasing by 0.3% but lower than the 1.3% pace recorded earlier.

This indicates that momentum in consumer spending might be slowed in May but remain resilient. Also, the preliminary data indicates that demand for automobiles is decent than other durable and non-durable goods. This would portray a rise in demand for big-ticket items in spite of higher interest rates by the Bank of Canada (BoC).

Meanwhile, the US Dollar Index is gaining strength amid a cautious market mood as investors seem convinced about one more 25 basis points (bps) interest rate hike from the Federal Reserve (Fed), which will push interest rates to 5.25-5.50%.

On the oil front, oil prices have sensed selling pressure above $76.50, however, the upside bias is intact as the market participants are anticipating the interest rate hike on July 27 by the Fed would be the last nail in the coffin.

It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices would strengthen the Canadian Dollar.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3156 at the time of writing. Pair opened at 1.3172 and is trading with a change of -0.12 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.3221, 50 SMA 1.334, 100 SMA @ 1.3455 and 200 SMA @ 1.348.

The previous day high was 1.3194 while the previous day low was 1.312. The daily 38.2% Fib levels comes at 1.3166, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3148, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.313, 1.3087, 1.3055
• Pivot resistance is noted at 1.3205, 1.3237, 1.328

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