Forex: USD/CAD set to close below 0.99

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Forex: USD/CAD set to close below 0.99

FITITOL--> FXstreet.com (San Francisco) - The USD/CAD pair traded in range between 0.9875 and 0.9928 on Tuesday, quoted around 0.9880 ahead of the closing bell in New York, down 0.3% on the day.

The slide followed disappointing Retail Sales in Canada for the month of February at -0.2% vs. a forecast of 0.1%, while January’s data was revised down to 0.2% from 0.5%.

The pair pushed higher on loonie-weakness during the initial reaction, but the rally was short-lived. Fan Yang, CMT, Chief Technical Strategist at FXTimes notes that broke a short-term rising trendline as it dipped to new daily lows.

“There are many support pivots to the downside within a consolidation mode, but the 0.9840 is the key one,” says Mr. Yang. “A break below this support pivot opens up the 0.9780, then 0.9720 pivots seen in the daily chart. Below 0.97, we might open up the 2011 lows in the 0. 94-0.9450 area.”