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USD/CAD takes out technical support as sales data eclipses oil price drop

On Friday better than expected Canadian retail sales data pushed the USD/CAD below the technical support (50 day moving average at 1.3676) in a more meaningful way than had been seen earlier in the week. when it had been breached a couple of times. Canadian sales were expected to be running flat in September, but they actually showed a rise of 0.6%. That news sent the USD/CAD tumbling below that support, to a low at 1.3594. It did recover some of that fall into the US close, but still ended the week well below the support level, at 1.3636. Earlier in the week I had warned, that the current chart configuration was not supportive and of course the fall to below 1.36 certainly endorsed that outlook. Even the slide in oil prices on Friday afternoon did not stop the Canadian dollar from gaining ground. Overnight the US dollar has edged a little higher, but not was unable to yet reclaim levels back above that 50 day moving average (now at 1.3679). The high seen earlier was set at 1.3661 and the low at 1.3625. It is currently trading at 1.3646

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