FxWirePro : USD/CAD retreats slightly but trend is still bullish

• USD/CAD eased slightly on Friday, pausing after two days of gains as markets digested Canadian retail sales data.

• Canada posted a widely expected decline in retail sales in July, as data from the national statistics agency on Friday showed consumers cut back on clothing and grocery purchases across a broad range of products.

•  Retail sales in Canada fell 0.8% in July to C$69.6 billion ($50.36 billion), Statistics Canada reported, erasing most of the gains from the previous month.

• June retail sales rose by a revised 1.6%, Statistics Canada reported, while an advance estimate points to a 1% rebound in August.

•The Bank of Canada surprised markets on Wednesday by lowering its key rate to a three-year low of 2.5%, while indicating it could implement further cuts if necessary.

• Immediate resistance is located at 1.3800(SMA 20), any close above will push the pair towards 1.3861(38.2%fib).

• Support is seen at 1.3766(50%fib) and break below could take the pair towards 1.3709(Lower BB).

Recommendation: Good to buy around 1.3770, with stop loss of 1.3700 and target price of 1.3870