FxWirePro: USD/CAD hits 3-1/2 month high on weak Canadian GDP, good to buy on dips

• USD/CAD hits three and half month high yesterday after weaker than expected Canada GDP data. Canada’s GDP declined unexpectedly in Aug by 0.1% month-over –month compared to forecast of 0.1%. The pair hits high of 1.29147 and declined slightly on profit booking. It is currently trading around 1.28820.
   
• BOC Governor Stephen Poloz cautioned that Canadian economy is at a “crucial” spot and faces a number of uncertainties. He also reiterated that the central bank will be very cautious in doing further rate adjustment. This confirms that there will not be further rate hike in the coming months.
   
• Technically on the higher side near term resistance is around 1.2925 (55- W EMA) and nay break above will take the pair to next level till 1.3000/1.3050 in the short term.
   
• The major support is around 1.2800 and any minor weakness can be seen only below that level. Any violation below will drag the pair down till 1.2735/1.26800. Minor weakness can be seen only below 1.2600.

It is good to buy above 1.2825-2.2830 with SL around 1.2775 for the TP of 1.3000.