Afternoon Forex
The Canadian retail sales reports were released a couple of hours ago and they were great, literally. Core retail sales jumped by 1.7%, while the main retail sales number jumped by 2.2%.
That´s as great as it can get for a single month. The Canadian economy has been stuck in the doldrums for so long but we´re seeing some green economic data recently. This is, of course, positive for the CAD, hence the 50 pip drop in USD/CAD after the release.
But, some of this decline comes from the Dollar weakness. EUR/USD broke above 1.08, but it stalled right at 1.0820. This is another big level following 1.08. It provided support for months last year, so it´s supposed to provide resistance according to forex textbooks, now that the price is coming from the downside.
In other parts of the world, dairy prices rose by 1.7% against a 6.43% decline the last time, so it´s no surprise that NZD/USD has jumped 40 pips.
USD/JPY is still threatening 112 and by the look of it, seems like it won´t take long before this mild support level goes. Do you feel like going for a little scalp if this level breaks?
You can place a sell pending order just below 112 for a 20-25 pip scalp, but it will also depend on the momentum,. We will have to watch the price action when we get there. If the break is swift, then it´ll be safe enough to sell, but if we hang around there for too long, then a fakeout is possible. We will have to be careful, as always.
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