USD/CAD yawns on lack of data

USD/CAD has started the week with a whimper. Early in the North American session, the pair is trading at 1.3564, down 0.11% on the day. There are no events out of Canada or the US, so we can expect a subdued day for USD/CAD.

Will Canada retail sales rebound?

With no events at the start of the week, investors will be keeping an eye on Canada’s retail sales, which will be published on Tuesday. The April numbers were nothing short of a disaster, as consumer spending plunged. Retail sales plunged by 26.4%, while the core reading fell by 22.0%. The lockdown has since eased in Canada, so we can expect an improvement in the May data. Still, unless the improvement is significant, traders shouldn’t expect any rebound from the Canadian dollar.

The Canadian dollar showed some strength in June, gaining 1.4%. Since then, USD/CAD has shown limited movement, with the pair unable to break out in either direction.

 

USD/CAD Technical

USD/CAD posted small gains in the Asian session but gave up these gains in European trade.

  • 1.3546 is an immediate support level. Below, we find support at 1.3509, protecting the 1.35 mark
  • 1.3594 is the next line of resistance, followed by resistance at 1.3603
  • The 10-day MA is touching the pair, at 1.3555. A break above this line would be a bullish sign

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.