FxWirePro: USD/CAD drifts lower, could be on verge of bigger drop

• USD/CAD edged lower on Tuesday as  investors digested U.S. retail sales data and  waited for key jobs and inflation data for more clues.

• U.S. retail sales data U.S. Commerce Department data on Tuesday showed U.S. retail sales were unexpectedly unchanged in December, putting pressure on consumer spending, which constitutes two-thirds of the economy.

• Investor attention this week will be focused on other upcoming U.S. data including monthly reports covering employment and consumer prices.

• Data-producing agencies are still catching up on releases after delays caused by last year's government shutdown.

• Oil prices were mostly flat on Tuesday as markets awaited guidance from developments in U.S.-Iran diplomatic relations, efforts to resolve Russia's war in Ukraine, and upcoming U.S. economic and oil inventory data..

•  Immediate resistance is located at 1.3655(38.2%fib), any close above will push the pair towards 1.3440(Lower BB).

• Support is seen at 1.3485(23.6%fib) and break below could take the pair towards 1.3441(Lower BB).

Recommendation: Good to sell   around 1.3560, with stop loss of 1.3630 and target price of 1.3470