FXstreet.com (Barcelona) - The USD/CAD had already climbed up to 1.0548 after finding support at 1.0436, near the 55-MA on the hourly charts, before the release of November's retails sales which spurred the pair upwards to hit a high not seen since Dec. 30 at 1.0553.

Peter Ruud, analyst of Informa Global Markets, points to the 1.0583 resistance level as being key to a bullish breakout.

Bulls seek a retest of 1.0583 (30 Dec high), near the stubborn 20-week MA, Ruud says. As mentioned last week, the USD/CAD's 20-week MA has capped (on a closing basis) recovery attempts since late November 2009. Clearing it would open the way to the 1.0750/1.0754 pivot (17 Dec/27 Nov lows).

Canadian retail sales fall as expected

Canadian retail sales contracted 0.3% for November, down from 0.8% growth in October. This result reverses three straight months of increasing retail sails and is in line with markets forecasts.

Subtracting the automotive sector, retail sales held even at 0.0%, down from 0.2% from October.

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