USD/CAD rebounds and trims losses despite upbeat Canadian GDP

The Canadian dollar weakened in the market during the last hours and erased most of the gains that followed the better-than-expected GDP reading. Earlier today, Statistics Canada released the January report that showed the economy expanded in January 0.6% above the 0.3% , expected by market consensus.

Canada: GDP grew 0.6% in January vs. 0.3% estimate

After the data USD/CAD tumbled and bottomed at 1.3290. From the lows, he pair has risen back above 1.3300 and is now just a few pips below the level it had before the release of the Canadian GDP report. 

At the moment the pair is trading at 1.3325/30, after finding resistance at 1.3340. The rally took place even as the US dollar remains weak in the market. 

Levels to watch 

To the upside, the pair lost strength before reaching 1.3350 that is an important intraday resistance zone; a consolidation on top could open the doors to further gains. Above here, the next potential resistance levels could be seen at 1.3410/15 (Mar 28 high) and 1.3450. 

To the downside, the area to break for the Loonie continues to be 1.3270. If it is able to hold below, it could slide toward the next strong support area located around 1.3210 (Feb 7 & 22 high).