USD/CAD extends drop towards 1.3300 amid an improving market mood, ahead of retail sales


  • USD/CAD is trading just above 1.3300, lower on the day.
  • Oil prices are rising and US stocks futures are moving to positive territory.
  • The technical picture is mixed for the pair ahead of Canada's retail sales report.

USD/CAD is trading just above 1.3300, down on the day and after hitting a high around 1.3360. The price of oil, Canada's critical export, is on the rise. The West Texas Intermediate (WTI) is trading around $53.50.

In addition, US S&P stock futures are now in positive territory, indicating an upbeat open on Wall Street. They were in the red earlier in the day. The Canadian Dollar is a "risk" currency, rising with an improving market mood. Earlier, concerns about global growth, echoed by the Bank of Japan among others, weighed on sentiment. 

The loonie faces a significant test later on. Canada releases retail sales data for November and the volume is projected to drop. The figures tend to have a significant impact on USD/CAD.

Crude Oil Inventories are not published today, Wednesday, as they normally are. The publication has been postponed to Thursday due to the bank holiday earlier in the week.

USD/CAD Technical Analysis

USD/CAD Technical Analysis January 23 2019

Dollar/CAD is trading above the 50 Simple Moving Average on the four-hour chart but above the 200 SMA. Momentum is slightly positive and the Relative Strength Index is nearly balanced. 

Support awaits at 1.3320, the 50 SMA, and more importantly at 1.3220 which was a swing low in January. Further support is seen at 1.3185 that supported USD/CAD earlier in the month.

1.3320 capped the pair last week and is still fought over. The next resistance is at 1.3360 which capped the pair earlier in the day. 1.3430 is the next line to watch. It provided support in late December. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends gains to fresh seven-week highs

The American dollar is under selling pressure amid a better market mood. EUR/USD above 1.1140 ahead of several Fed’s speakers that can rock markets.

EUR/USD News

GBP/USD trades around 1.29 amid speculation of Brexit vote

GBP/USD is trading around 1.29 as speculation mounts about the fate of the Brexit deal. UK PM Johnson faces a test in parliament after securing an accord with the EU.

GBP/USD News

USD/JPY: struggles near mid-108.00s pivotal point amid weaker USD

US Dollar Index slumped to multi-month lows below 97.50. 10-year US Treasury bond yield adds more than 1% on Friday. Wall Street's main indexes look to start the day little changed.

USD/JPY News

Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more

Forex MAJORS

Cryptocurrencies

Signatures