FxWirePro: USD/CAD gains some upside momentum but still bearish

• USD/CAD pair edged higher on Tuesday as the U.S. dollar regained some footing following mixed economic data from the United States.

•   U.S. retail sales were softer than expected in May, but consumer spending remained supported by solid wage growth.

• Retail sales dropped by 0.9% in May, marking the steepest decline since January, following a revised 0.1% fall in April, according to data from the Commerce Department’s Census Bureau.

• Core retail sales excluding autos, gasoline, building materials, and food services—rose 0.4% in May, following a revised 0.1% decline in April.

  • May's solid rise and upward revision to April suggest a modest pick up in consumer spending this quarter after it slowed sharply in the January-March quarter.

• Immediate resistance is located at 1.3657(Jun 13th high), any close above will push the pair towards 1.3713(38.2%fib).

• Support is seen at 1.3555(23.6%fib) and breakbelow could take the pair towards 1.3499(Lower BB).

Recommendation: Good to sell around 1.3600, with stop loss of 1.3680 and target price of 1.3520