FX.co ★ USD/CAD needs more bullish energy

The USD/CAD pair changed little in the short term and now is trading at 1.3504 at the time of writing. Technically, the current sideways movement could represent a consolidation. The rate needs to attract more buyers before resuming its growth.

Fundamentally, the Canadian retail sales data came in mixed. The Retail Sales indicator reported a 1.4% drop versus 1.3% drop estimated, while Core Retail Sales dropped only by 0.3% versus the 0.8% drop expected. Tomorrow, the US Flash Manufacturing PMI and Flash Services PMI represent high-impact events and could really shake the markets. Positive US data should lift the greenback.

USD/CAD Upside Scenario Still Possible!

As you already know from my previous analysis, the currency pair is trapped between 1.3535 and 1.3437 levels. It seems undecided in the short term, that's why we need to wait for fresh opportunities.

Staying near 1.3535 and the median line (ml) may announce an imminent breakout. The weekly pivot point of 1.3490 represents static support.

USD/CAD Outlook!

A new higher high, a valid breakout through 1.3535 and above the median line (ml) activates further growth and represents a buying signal. The upper median line (uml) represents an upside target.