Friday 20 July 2018

USD/CAD Upbeat Canadian data supported the Loonie


The USD/CAD is trading around 1.3130, having marked  1.08 % down for the day after upbeat Canadian economic data today. Inflation is up with 2.5% for June, beating the expectations for 2.4% and retail sales also showed better than expected figures - 2.0% rise in May against the forecasted 1.1%. Meanwhile the US dollar still suffers because of Trump’s comments on Fed’s policy that rate hikes are causing troubles on the economic progress.
Technically speaking the short-term outlook remains bearish. On the four hour time frame the prices is developing below its flat moving averages. RSI is locates at 38 and has lost directional strength. Stochastic is displaying strong downward slope and has entered into oversold area. 
The pair fell with almost 140 pips today from its daily high, surpassed the 1.3155 support area and is suggesting a slowdown of the bullish trend. Should the pair break the next support at 1.3110 then doors are opened for testing 1.3065.




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