Sasha Singh
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USDCAD : Confirming a Bearish Move

USDCAD today plunges after the release of strong Canadian Retail Sales and CPI data strengthening CAD and weakening US Dollar. 

Official data showed that the Retail Sales increased in April by 1.1%. 10 out of 11 sub sectors posted increases. Among all sub sectors motor vehicle and parts dealers accounted for the largest gains. 

separate report showed that the Consumer Price Index rose 2.3% in 12 months to May and this year over year increase in CPI was led by energy prices. 

On the daily chart, USDCAD finally broke down from the support of the triangle within which it was consolidating confirming the bearish movement. Pair also broke below the 200 day SMA. The nearest support level the pair will find is at 1.0730 which was earlier acting as resistance for the pair.

(USDCAD : Daily Chart)