USD/CAD declined sharply once again after showing a minor jump above 1.2900 level. The pair lost almost 200 pips in previous week on better than expected Canadian economic data. The pair hits low of 1.26995 on Friday and is currently trading around 1.27122.
Canadian retail sales rose and CPI rose better than expected. Canadian GDP data came unchanged in Oct at 0% compared to forecast of 0.2%. A slight increase in the growth of service sector was offset by decline in goods- producing industries.
Technically, major short term support is around 1.26840 (trend line joining 1.24329 and 1.26237) and any break below will drag the pair till 1.2600/1.24300. Short term weakness only below 1.2430. Overall bullish invalidation only below 1.2060. The minor support is around 1.2680 (trend line support)/1.2620.
On the higher side, near term major resistance is around 1.2755 (50- day MA) and any break above will take the pair to next level till 1.2800/1.2880/1.2925. Short term bearish invalidation only above 1.2925.
It is good to sell on rallies around 1.2740-45 with SL around 1.2800 for the TP of 1.2600.