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Uncle Sam is releasing the October retail sales report today!

Will strong consumer spending allow USD/CAD’s rally to resume?

Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. President Biden signed $1 trillion infra bill into law

Asian shares advance on Chinese property sector relief, Biden-Xi meeting

RBA Governor Lowe dismissed 2022 rate hike bets

U.K. average earnings index up 5.8% vs. 5.5% forecast

U.K. claimant count down 14.9K vs. 39.2K forecast

U.K. jobless rate improved from 4.5% to 4.3%

Upcoming Potential Catalysts on the Economic Calendar:

U.S. retail sales data at 1:30 pm GMT
U.S. industrial production at 2:15 pm GMT
FOMC members Barkin and Bostic to testify at 5:00 pm GMT
New Zealand GDT auction coming up

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: USD/CAD

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

This pair’s uptrend seems to be picking up steam, as price is cruising above a rising trend line on the hourly chart.

A pullback to this support level may be in order, and buyers could be hanging out at the Fib retracement levels.

In particular, the 61.8% Fib is right smack in line with the trend line and area of interest around 1.2470.

If you’re eager to hop in, USD/CAD is already finding some buyers at the 50% Fib and might be ready to climb back to the swing high at the 1.2600 handle from here.

The 100 SMA is above the 200 SMA to confirm that support levels are more likely to hold than to break. The 200 SMA is also near the 50% Fib to add to its strength as a floor.

Also, Stochastic appears to be pulling higher from the oversold region to suggest that sellers are taking a break.

Just make sure to be on the lookout for the U.S. retail sales release later today, as a weaker than expected read could spur a sharp selloff for the Greenback.