- The USD/CAD pair continued to dip on Tuesday as robust domestic retail sales data for June bolstered expectations the Bank of Canada could raise interest rates in October.
- Retail sales, which hit a record C$48.99 billion ($38.88 billion), were up in six of the 11 sectors and grew by 1.1 percent when weak auto sales and lower gasoline prices were excluded.
- The currency touched C$1.2526 to the U.S. dollar, or 79.83 U.S. cents, after the data was released, its strongest level since August 1.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.2594 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
- The immediate support can be seen at 1.2520, break below this level will expose the pair to next support level at 1.2481.
- Major resistance can be seen at 1.2585, break above this level will expose the pair towards 1.2600 levels.
Resistance Levels
R1: 1.2554 (50% Retracement level)
R2: 1.2585 (61.8% Retracement level)
R3: 1.2600 (Psychological levels)
Support Levels
S1: 1.2520 (38.2% Retracement level)
S2: 1.2481 (23.6% Retracement level)
S3: 1.2445 (Aug 1st lows)
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