Bearish Bias on USD/CAD – Fundamental and Technical Confluence

Fundamental Overview:
We’re seeing several bearish signals from the fundamental side for USD/CAD:

Retail Sales: Negative, indicating weaker consumer spending and slowing economic activity.

Inflation: Bearish, as high inflation may lead to tighter monetary policies, slowing growth.

Employment Change: Negative, suggesting a contraction in job creation, signaling economic weakness.

Unemployment Rate: Negative, reflecting potential challenges in the labor market.

These factors all lean toward a bearish bias, reinforcing the case for selling USD/CAD.

Technical Overview:
On the chart, price is currently in a discounted zone with confluence from the anchored VWAP from the recent low, which aligns with the current bearish trend. The VWAP suggests that the price has retraced back to a significant level, and with the fundamentals pointing to a weak outlook for USD, a continuation to the downside seems likely.

Key Levels & Target:

Short entry near the VWAP confluence.

Targeting the next key support level, watching for any price action confirmation.