FxWirePro: USD/CAD trades higher on weak Canadian retail sales, market eyes Canadian CPI

• USD/CAD is continuing its bullish trend and hits fresh 1-1/2 month high on account of weak Canadian retail sales. The pair high of 1.27595 yesterday.  It is currently trading around 1.27116. The good jump in USD/CAD yesterday was due to sharp decline in Canadian retail sales.
   
• Canadian retail sales declined unexpectedly by 0.8% for the month of Dec and excluding motor vehicle and parts dealer’s retail sales dropped 1.8%.
   
•  Oil prices jumped almost more than $2 on declining crude inventory. Energy Information Administration said that U.S crude stockpiles fell by 1.6 million barrels and its first inventory draw in four weeks. Crude oil prices hits high of $63.06 and is currently trading around $62.60.    
   
• On the higher side, major resistance is around 1.2760 and any break above will take the pair till 1.280/1.2830 (233- day MA).
   
• The near term support is around 1.2675 and any break below will take the pair till 1.2630 (5- day MA)/1.2578 (10- day MA)/1.2520. Short term bearish continuation only below 1.2450.

It is good to buy on dips around 1.2675 with SL around 1.2620 for the TP of 1.2800/1.2825.