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USD/CAD spiked to 1.1040

FXStreet (Edinburgh) - The Canadian dollar rapidly depreciated vs. its southern counterpart on Tuesday, lifting the USD/CAD back to the 1.1040/45 band in the wake of the release of Canadian retail sales.

USD/CAD back above 1.1000

The pair quickly surpassed the psychological 1.10 handle after Canadian Retail Sales surprised investors to the downside in July, contracting 0.1% inter-month and dropping 0.6% excluding the Auto sector. Both prints represent a significant drop considering the expansion of 1.2% and 1.5%, respectively, from June. Shaun Osborne, Chief FX Strategist at TD Securities, commented, “we do acknowledge that funds looks heavy on the charts and that the 1.0970/90 range is shaping up as a congestion area on the daily chart that seems to be exerting a gravitational pull at the moment”.

USD/CAD key levels

At the moment the pair is losing 0.10% at 1.1032 with the next hurdle at 1.1050 (high Sep.23) ahead of 1.1072 (high Sep.16) and then 1.1100 (high Sep.15). On the flip side, the immediate support lines up at 1.0955 (Kijun Sen) ahead of 1.0926 (low Sep.22) and finally 1.0900 (psychological level).

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