FxWirePro: USD/CAD retains bearish outlook with scope to target 1.2450

• 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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