USDCAD lower ahead of Canadian retail sales numbers
Gary Christie November 20, 2020 5:02 AM
Traders watching key support for a possible bounce: Chart
The US Dollar was mixed against all of its major pairs on Thursday. On the US economic data front, Initial Jobless Claims unexpectedly rose to 742K for the week ending November 14th (700K expected), from a revised 711K in the week before. Continuing Claims fell to 6,372K for the week ending November 7th (6,400K expected), from a revised 6,801K in the prior week. The Leading Index rose 0.7% on month in October (as expected), in line with September. Finally, Existing Homes Sales jumped to 6.85M on month in October (6.47M expected), from a revised 6.57M in September, a level last reached in 2006.
On Friday, no major U.S. economic data is expected.
The Euro was bullish against all of its major pairs. In Europe, September Eurozone Construction Output was released at -2.9% on month, vs +2.6% expected.
The Australian dollar was bearish against all of its major pairs.
The USD/CAD declined 35 pips in Thursday's trading ahead of Friday's September retail sales data. Canada is anticipated to report a slight gain of 0.2% compared to 0.4% back in August. Retail sales ex Auto may be flat. The average pip move after the event is around 27 pips in the hour after retail sales are announced. The announcement has been bullish for the USD/CAD in 8 out of the last 12 monthly announcements.
Looking at the chart, the pair is approaching a key support area inside a consolidation are between 1.299 support and 1.342 resistance. A double bottom may still be in play but will not be confirmed until price action breaks above 1.342 resistance. The preference is for a rebound higher towards 1.365.
Source: GAIN Capital, TradingView
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