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USDCAD hits new weekly low as Canadian retail sales lift CAD
Better-than-expected Canada retail sales and US buying of longer-dated Treasuries helped push the US dollar weaker, taking USDCAD to 1.3733.
USDCAD fell to a new weekly low at 1.3733, extending a broader selloff that has leaned bearish for the pair, according to Forexlive. Traders also noted the session saw a modest bounce off earlier lows, before sellers returned to drive the decline again.
Forexlive linked the move to factors supporting a stronger Canadian dollar, including Canada retail sales coming in better than expectations. The outlet also pointed to talk around a potential US-Canada trade framework and US demand for longer-dated Treasuries as contributing to lower pressure on the US dollar.
On the technical side, Forexlive said the pair started the week near a support zone defined by a lower channel trendline and the 200-day moving average around 1.3846. The rebound later stalled near the 100-day moving average near 1.39138, and selling then intensified after a US Treasury-related announcement, pushing USDCAD back below the 200-day level.
Forexlive added that USDCAD broke below the 61.8% retracement of the May low to near 1.38169, opening risk toward the next swing area between 1.3765 and 1.3778. That zone is now the key close-risk level for sellers, with a move back above 1.3778 potentially shifting focus back to the broken 61.8% retracement and the underside of the broken channel trendline near 1.3824.