USDCAD Technical Analysis – February 12, 2021

The U.S. Dollar (USD) rose against the Canadian Dollar (CAD) on Friday, increasing the price of the USDCAD to more than 1.2700, ahead of the release of Canadian Retail Sales news. 

Technical Analysis 

As of this writing, the USDCAD affirms around 1.2702. The price might face some resistance near the given below price tags. 

Resistance 

1.2783 – the key horizontal resistance 

1.2832 – the high of February 05, 2021

1.2904 – the 38.2% fib level resistance 

On the downside, the price of the pair might find some support near the listed price levels 

Support 

1.2675 – the lower trendline arm

1.2600 – the psychological number 

1.2588 – the major horizontal support 

Canadian Retail Sales News

Statistics Canada is scheduled to release stats for the Retail Sales on Friday (February 19, 2021). As per economists’ consensus, the Canadian Retail Sales registered a reading of 0.1% in December 2020, as compared to the reading of 1.3%, in the month before.

The stats for the Retail Sales reflect the worth of goods sold by retailers. The figure is derived after taking account of goods and services selected from representative shopping baskets of stores of different types and sizes on a sampling basis. The retail sales index also indicates consumer confidence. It reflects the performance of the retail sector in the short term.

Generally speaking, increasing numbers are seen positive for the Canadian Dollar, but suggest a bearish market for the USDCAD pair ahead, and vice versa.

Conclusion

Given the macro-economic outlook of the pair over the past few days, selling the pair near current levels might be a worthwhile trading decision in the short to medium-term.