- USD/CAD loses ground ahead of Canadian retail sales data.
- Technical indicators suggest a test of the support level at 1.3650.
- A break above 1.3700 could find resistance at the 21-day EMA.
USD/CAD gives back intraday gains, trading near 1.3690 during the European session on Friday ahead of the release of Canadian retail sales data. Investors are betting on the possibility that the Federal Reserve (Fed) will not raise interest rates further, which could weaken the USD/CAD pair.
Technical indicators for the USD/CAD pair support the current bearish trend. The MACD line is below the center line and the signal line, indicating bearish momentum in the pair.
Furthermore, the 14-day Relative Strength Index (RSI) below 50 indicates bearish sentiment, indicating that the pair could meet the main support level at 1.3650 aligned with the 50% Fibonacci retracement at 1.3639.
A firm break below this last level could influence the USD/CAD pair bears to fall to the support region around 1.3600.
To the upside, if the USD/CAD pair breaks the psychological barrier of 1.3700, it could test the 21-day EMA at the 1.3724 level followed by the 1.3750 level. If it breaks this level, the pair could explore the 1.3800 area.
USD/CAD daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
