Initial Claims around expectations. Canada wholesale sales better
The US initial claims came in about as expected, at 277K vs. 271K. Canada wholesale trade sales for the month of June were better at 1.3% vs. 0.9% estimate. Both the EURUSD and the USDJPY moved a few pips. No real reaction as you might expect.
The USDCAD has moved lower on the better wholesale sales. The pair is now down on the day (the close came in at 1.3126) This is now resistance for traders. The level also corresponds with the 200 bar MA on the 5 minute chart and is the current 38.2% of the move down from the high today. The pair is currently making new session lows - taking out the Asia-Pacific low at the 1.3100 area.
Of course CAD traders have an eye (or maybe two) on the price of oil. The current futures are at 40.93 which is a higher than yesterday but still down there.
The pair is scooting lower now and is testing the 200 hour MA (green line in the chart below). Another key level for technical traders. The 1.3100 is now the midpoint of the weeks trading range and will be a closer resistance level now (see hourly chart below). A break below the 200 hour MA will look back toward the low from yesterday as the next major target.
