The USDCAD pair saw a modest gain to 1.3605 NY close on Friday despite a dismal Headline and Core Retail Sales report on Friday. Headline Core Sales slumped to -26.4% against forecasts of -15.0% while Core sales dropped to -22.0% against expectations of -12.7%. USDCAD jumped initially to its overnight high at 1.3617 risk before settling at its New York close.
This morning, risk aversion hit Asian markets and this pair rallied further to 1.3630 before settling at its current 1.3615. In the current environment, expect the USDCAD to drive higher. Immediate resistance can be found at 1.3630 followed by 1.3630 and then 1.3700. Immediate support lies at 1.3600 followed by 1.3570 and 1.3540. Look to buy dips in a likely range today of 1.3580-1.3680.
