30 May 2014
USD/CAD jumps after Canadian GDP miss
FXStreet (Córdoba) - The USD/CAD jumped to fresh highs after data showed the Canadian GDP grew less than expected during the first quarter.
Canada’s annualized gross domestic product rose 1.2% in the first quarter versus 1.8% expected and down from 2.7% the previous quarter. The USD/CAD rallied from a 3-week low of 1.0821 to a daily high of 1.0865 before easing slightly. At time of writing, the USD/CAD is trading at 1.0845, still 0.1% above its opening price.
USD/CAD technical outlook
“Technically, there is no denying that the market retains a weak undertone, however, and that trend momentum is bearishly aligned—though perhaps not strongly so, across a range of timeframes”, said the TD Securities team. “This is something we are usually loathe to ignore and while we remain fundamentally bearish on the CAD in the longer-run, there is certainly a risk of more, near-term CAD gains versus the USD and we remain bearish on the outlook for EUR/CAD (targeting 1.4450)”.
“The price action certainly suggests that the early May low of 1.0815—important support now—is at risk and a break below there puts 1.0730/50 on the radar over the next few weeks”, they added. “Intraday, resistance is 1.0870 and 1.0930”.
Canada’s annualized gross domestic product rose 1.2% in the first quarter versus 1.8% expected and down from 2.7% the previous quarter. The USD/CAD rallied from a 3-week low of 1.0821 to a daily high of 1.0865 before easing slightly. At time of writing, the USD/CAD is trading at 1.0845, still 0.1% above its opening price.
USD/CAD technical outlook
“Technically, there is no denying that the market retains a weak undertone, however, and that trend momentum is bearishly aligned—though perhaps not strongly so, across a range of timeframes”, said the TD Securities team. “This is something we are usually loathe to ignore and while we remain fundamentally bearish on the CAD in the longer-run, there is certainly a risk of more, near-term CAD gains versus the USD and we remain bearish on the outlook for EUR/CAD (targeting 1.4450)”.
“The price action certainly suggests that the early May low of 1.0815—important support now—is at risk and a break below there puts 1.0730/50 on the radar over the next few weeks”, they added. “Intraday, resistance is 1.0870 and 1.0930”.