FxWirePro: USD/CAD recovers slightly on weak Canada GDP data, good to sell on rallies
Canadian dollar declined sharply after weaker than expected Canada GDP data. The pair recovered after making a low of 1.24168 at the time of writing. Canada GDP for the month of Jul shows 0.0% vs 0.1% estimate and 3.8% v…
Canadian dollar declined sharply after weaker than expected Canada GDP data. The pair recovered after making a low of 1.24168 at the time of writing.
Canada GDP for the month of Jul shows 0.0% vs 0.1% estimate and 3.8% vs forecast of 3.9% (YOY). The industrial product price index for Aug came at 0.3% vs 0.5% estimate.
Loonie hits high of 1.25194 yesterday after forming a temporary bottom at 1.2060.The pair upside is capped on strong crude oil prices. WTI crude jumped till $52.83 on increasing tension in Iraqi Kurdistan.
On the higher side, near term resistance is around 1.2525 (55- day EMA) and any break above will take the pair to next level till 1.2600/1.266 (Aug 31st 2017 high).
The near term support is around 1.2430 (55- day EMA) and any break below will drag the pair down till 1.23600/1.23000.
It is good to sell on rallies around 1.2500 with SL around 1.2535 for the TP of 1.2405/1.2365.
