Canadian dollar fell sharply after downbeat Canadian data

Slobodan Drvenica Windsor Brokers

USDCAD

Inflation in September missed forecast at 0.3% m/m on 0.2% rise while annualized figure came along with expectations at 1.6%.
Canada's retail sales disappointed in August, falling by 0.3% against forecast for 0.5% and 0.4% in the previous month.
Core retail sales fell by 0.7%, strongly undershooting forecast for 0.3% rise and increase by 0.2% in July.
USDCAD spiked to three-day high at 1.2567 and emerged above daily cloud, where the price was stuck in past one week.
Break above cloud top is bullish signal which requires confirmation on close above it for confirmation and could trigger acceleration towards next targets at 1.2590/1.2610.
Firm break here would signal an end of 1.2597/1.2432 congestion and resumption of larger uptrend from 1.2061 (08 Sep low).

Res: 1.2567; 1.2590; 1.2610; 1.2662
Sup: 1.2515; 1.2502; 1.2465; 1.2458

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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