The U.S. Dollar (USD) rose against the Canadian Dollar (CAD) the week ended June 06, 2021, increasing the price of the USDCAD pair to more than 1.2000 ahead of the release of the U.S. Retail Sales News.
Technical Analysis
As of this writing, the USDCAD strengthens around 1.2088. Should the price keep increasing, the pair might face some resistance near the given price levels:
Short-Term Resistance
1.2133 – the high of May 30, 2021
1.2248 – the horizontal resistance
1.2384- the upper trendline arm
Image Source – MetaTrader4
On the downside, the pair might find some support near the listed price levels:
Short-Term Support
1.2004 – the major horizontal support
1.1903- the Fibonacci retracement (61.8%)
1.1800 – the psychological number
U.S. Retail Sales News
The US Census Bureau anticipates releasing Retail Sales figures on June 15, 2021. As per the consensus of economists, the U.S. retail sales news might register a reading of -0.4% in May, as compared to the reading of 0%, in the month before.
The U.S. retail sales data reflect the total receipts of the retail sector in the United States over the period under consideration. The retail sales volume changes on monthly basis. The change in the retail sales volume is represented in a percentage form. Not to mention, the retail sales news is an important economic indicator since it helps data analysts to ascertain consumer spending patterns in the coming days. Generally speaking, a high reading amid the retail sales data suggests a bullish trend for the USDCAD pair and vice versa.
Conclusion
Considering the price movement of the pair over the past few days, it may be a better option in the short term if the pair was sold at around 1.2133. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.