USD/CAD has been selling off aggressively but the pair could take a break from its recent dives, as it approaches the 1.0300 major psychological level. This is in line with a former resistance level and area of interest, as well as the rising trend line connecting the pair’s lows.
Canada is set to print its core and headline retail sales figures and possibly show a recovery in both. Core retail sales could rebound by 0.1% after falling by 0.3% last month while the headline figure could print a 0.4% uptick, higher than the previous 0.1% growth. However, weaker than expected data could trigger a selloff for the Canadian dollar.
Stochastic is already in the oversold region, suggesting that a potential bounce is in the cards.
By Kate Curtis from Trader’s Way