• USD/CAD dipped on Wednesday as dollar weakened after data showed the US economy shrank in the first quarter.
• U.S. GDP shrank at a 0.2% annualized rate in Q1, slightly better than the initial 0.3% drop, according to the BEA's second estimate released Thursday.
• Mwanwhile, the number of Americans filing new applications for unemployment benefits also increased more than expected last week.
• Later this week, markets will focus on Canada’s March and Q1 GDP data due Friday, which could highlight the impact of U.S. tariffs on the economy and potentially influence the Bank of Canada’s interest rate decision next week.
• At GMT 17:10, the dollar was trading down 0.20 percent at 1.3811 against Canadian dollar.
• Immediate resistance is located at 1.3878 (38.2%fib), any close above will push the pair towards 1.3992(50%fib).
• Support is seen at 1.3723 (23.6%fib) and break below could take the pair towards 1.3677(Lower BB).
Recommendation: Good to sell around 1.3830, with stop loss of 1.3900 and target price of 1.3750
