FxWirePro: USD/CAD range bound short term, primary trend bullish

• USD/CAD traded in narrow range on Thursday as investors digested Canadian retail sales data and awaited US CPI data. 

• Canada’s retail sales rebounded in August as consumers spent more on new vehicles, groceries, and clothing, according to data released Thursday by Statistics Canada..

• Retail sales in Canada rose 1% in August to C$70.40 billion ($50.20 billion), rebounding from an upwardly revised 0.7% decline in July, Statistics Canada reported..

•Retail sales have fluctuated since President Donald Trump imposed a series of tariffs on Canada in March, reflecting shifting consumer sentiment and the broader impact of trade tensions on spending patterns.

•The main focus this week is the release of U.S. inflation data, which will proceed despite the government shutdown, as it is needed by the Social Security Administration to calculate the annual cost-of-living adjustment for 2026.

•  Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.

•  Immediate resistance is located at 1.4000(Psychological level), any close above will push the pair towards 1.4080(23.6%fib).

• Support is seen at 1.3982 (38.2%fib) and break below could take the pair towards 1.3938 (Oct 9th low).

Recommendation: Good to buy  around 1.3990, with stop loss of 1.3920 and target price of 1.4060