Forex Technical Update
Retail Sales in Canada for the month of February disappointed with -0.2% vs. forecast of 0.1%, while January's data was revised down to 0.2% from 0.5%. The initial reaction in the USD/CAD was a rally, or loonie-weakness. However, this reaction did not follow through after the opening bell in the US session at 9:30AM EDT. The 1H USD/CAD chart shows the market making a new low for the day, and breaking a short-term rising trendline.
There are many support pivots to the downside within a consolidation mode, but the 0.9840 is the key one. A break below this support pivot opens up the 0.9780, then 0.9720 pivots seen in the daily chart. Below 0.97, we might open up the 2011 lows in the 0.94-0.9450 area.
A failure to break below 0.9840, and a return above 1.0 will continue to reflect a sideways market, with resistance again at 1.0050. Above 1.0050, our bearish outlook in the daily chart can be shelved.
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes and IBTrade will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.