The USD/CAD has increased today and is struggling to recover after the significant drop. It is pressuring an important dynamic support, has dropped below it, but this could still be a false breakdown. The USD has dragged the price higher as the USDX has managed to rebound and to climb above the 93.50 psychological level.
Is very important to see what impact will have the Canadian data, the Retail Sales figures may bring some volatility, but remains to see the direction. USD/CAD will increase sharply in the upcoming hours if the numbers will disappoint.
The Core Retail Sales are expected to increase by 0.0% in June versus a 0.1% drop in May, while the Retail Sales could increase by 0.2% in June, but less compared to the 0.6% growth in the former reading period.
You can see that the rate failed to retest the median line (ml) of the minor descending pitchfork and now is trying to climb above the fourth warning line (wl4) of the former minor ascending pitchfork. Technically, it could move towards the upper median line (uml) again, but unfortunately, the fundamental factors will take the lead.
Could move in range on the short term because needs to accumulate more directional energy before will start really start another significant upside movement. Only an accumulation will signal a reversal on the daily chart.
USD/CAD could come down to retest the 1.2460 major static support and the lower median line (ascending black line) of the major ascending pitchfork.
