The USD/CAD May Drop Further As the Canadian GDP Figure Beats Estimates

Summary:

The USDCAD has resumed the downside move after the Canadian GDP figure surprised to the upside, beating estimates of 0.4%.

The USDCAD is currently trading lower after the Loonie gained on the greenback during the New York session. The Canadian Dollar is benefitting from the upbeat GDP numbers, which show that the Canadian economy grew by 0.7%, as opposed to the previous numbers and the market expectation of 0.4%.

The Loonie is also benefitting from a 0.33% rise in crude oil prices on the day. The USDCAD is now trading lower by 0.41% on the day. It had hit session lows at 1.27315 but is now off intraday lows and currently trades at 1.2772 as at the time of writing.

The US Dollar is also facing a generalized sell-off, and this has kept the pair on offer for most of today’s trading session.

Technical Outlook for USDCAD

Today’s downside move cut through the 1.27831 support and tested the 1.27315 price level. This move has been rejected, but the break of 1.27831 looks on and needs confirmation. If this is confirmed, then we could see a retest of 1.27315. Only if the price drops below 1.27315 will we see a possibility of a decline towards 1.26647 and 1.26219 respectively.

On the flip side, failure to confirm the breakdown of 1.27831 could see a further move up, which puts 1.28422 at risk. A further advance brings 1.29241 into the picture, with 1.29953 also lining up as a possible upside target.