Trading USD/CAD ahead of US retail sales release news
|The U.S. Dollar (USD) slid down against the Canadian Dollar (CAD) the week ended on April 11, 2021, decreasing the price of the USDCAD pair to less than 1.2600 ahead of the release of U.S. Retail Sales News. The technical bias remains bearish since the pair printed a lower low in the recent downside move.
Technical analysis
As of this writing, the USDCAD hovers around 1.2526. If the price continues to drop, then the pair might sustain near the listed support levels.
Short-term support
1.2473 – the low of March 21, 2021.
1.2363 – the key horizontal resistance.
1.2300 – the psychological level.
USDCAD Weekly – Source MetaTrader4
On the upside, the pair might find some resistance near the given below price levels.
Short-term resistance
1.2663 – the high of August 27, 2017.
1.2700 – the psychological number.
1.2775 – the horizontal resistance.
US retail sales news
The US Census Bureau is scheduled to release the numbers for Retail Sales Data on April 15, 2021. According to economists, the retail sales news might register a reading of 5.9% in March, as compared to the reading of -3%, in the month before.
The U.S. retail sales data reflect the total sales proceeds of the retail stores in the United States. The keeps changing every month. Any improvement or decline in the sales volume of retail stores is represented in percentage. The retail sales data is an important economic indicator since it projects the future spending patterns of consumers. Generally speaking, a high reading for the retail sales data suggests a bullish trend for the USDCAD pair and vice versa.
Conclusion
Given the macro-economic outlook of the pair, it may be a better option in the short term if the pair was sold around 1.2663. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.
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