USD/CAD plummets to 1-month lows on upbeat Canadian retail sales

Haresh Menghani FXStreet

• Canadian retail sales come in better than expected and prompt some fresh selling.
• A sharp fall in Oil prices does little to lend any support amid a modest USD pullback.
• Investors now look forward to the latest FOMC policy minutes for a fresh impetus.

The USD/CAD pair maintained its offered tone through the early North-American session and tumbled to four-week lows in reaction to upbeat Canadian macro data.

The pair extended its recent pullback from levels just above the key 1.3500 psychological mark and finally managed to find acceptance below the 1.3400 handle, confirming a near-term bearish broke below a short-term consolidative trading range held over the past three weeks.

The release of stronger than expected Canadian retail sales figures, showing a monthly growth of 1.1% in March provided a strong lift to the Canadian Dollar and turned out to be one of the key factors behind the latest leg of a sudden drop of around 30-pips in the last hour.

Bearish traders further took cues from a modest US Dollar pullback, led by weaker US Treasury bond yields, and seemed rather unaffected by a sharp intraday fall in Crude Oil prices, which tend to undermine demand for the commodity-linked currency - Loonie.

Moving ahead, focus now shifts to the release of minutes of the latest FOMC monetary policy meeting, which might play an important role in influencing the near-term USD price dynamics and eventually provide a fresh directional impetus.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3393
Today Daily Change	-0.0012
Today Daily Change %	-0.09
Today daily open	1.3405

Trends
Daily SMA20	1.3452
Daily SMA50	1.3395
Daily SMA100	1.3334
Daily SMA200	1.325

Levels
Previous Daily High	1.3434
Previous Daily Low	1.3396
Previous Weekly High	1.3514
Previous Weekly Low	1.34
Previous Monthly High	1.3522
Previous Monthly Low	1.3274
Daily Fibonacci 38.2%	1.341
Daily Fibonacci 61.8%	1.342
Daily Pivot Point S1	1.3389
Daily Pivot Point S2	1.3373
Daily Pivot Point S3	1.335
Daily Pivot Point R1	1.3428
Daily Pivot Point R2	1.3451
Daily Pivot Point R3	1.3467

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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