USD/CAD: 1.3000 support tested heading into US data, BOC survey

Attacks 1.3000 amid resurgent US dollar supply and risk-off in European equities.
Downside could be limited, as the US retail sales are set to rise in September. BOC business outlook survey also remains the key.

Dhwani Mehta FXStreet

The offered tone around the US dollar keeps growing bigger, knocking-off the USD/CAD pair to just ahead of the 1.30 handle, as attention now turns towards the US retail sales data due on the cards at 1230 GMT today.

The declines in the major can be mainly attributed to fresh US dollar selling across the board, as markets continue to weigh in the latest geopolitical tensions between the US and Saudi Arabia over the disappearance of the Washington Post journalist Jamal Khashoggi at the Saudi consulate in Istanbul.

More so, the pair suffers from the risk-off moods seen on the European equity markets amid Brexit uncertainty and Italian budget woes while firmer WTI prices also add to the renewed upside seen in the resource-linked Loonie.

The immediate focus now remains on the US retail sales data, which is expected to arrive at 0.4% m/m in Sept versus 0.3% last. The spot also looks forward to the BOC business outlook survey for some fresh trading impetus.

USD/CAD Technical levels

According to Adam Lemon at DailyForex.com , “There is no long-term trend in this pair to exploit. Technically, the best analysis that could be made was that if the price remained firmly above 1.3000 for a while, it would probably continue to rise. Go long after the next strongly bullish price action rejection following the next touch of 1.3003 or 1.2952. “

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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