USD/CAD back below 1.3000, Canada’s retail sales eyed

FXStreet (Mumbai) - USD/CAD dived in red during the European session, reversing the previous rally to six-year highs, largely as the US dollar was relentlessly sold-off across the board on a bout of profit-taking after the recent rally backed by better than expected US housing data.

USD/CAD retraces from 1.3048

Currently, the USD/CAD pair trades -0.40% lower at 1.2982, having posted day’s high at 1.3048 and day’s low at 1.2960. The Canadian dollar outperforms the buck this session mainly driven by broad USD softness while stabilizing oil prices also keeps the resource-linked loonie underpinned.

The USD/CAD pair printed new multi-year levels at 1.3055 on Wednesday, mirroring the drop in crude oil prices. Meanwhile, traders absorbed some additional positive news out of the US.

Markets now shift attention towards Canada’s retail sales and jobs data from the US for further momentum on the pair. Retail trade in Canada is projected to rise 0.6% during May, after a downward surprise of a 0.1% decline in April, according to consensus.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.3048 (Today’s High) levels and above which it could extend gains to 1.3055 (July 22 Levels). To the downside, immediate support might be located at 1.2960 (Today’s Low) levels and below that at 1.2932 (July 22 Low).

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