FxWirePro: USD/CAD trade Idea

Canadian dollar was trading higher and hits 7- week high on account of better than expected Canadian GDP data.Canada’s economy grew 0.5% month-on-month biggest gain since Jul 2016 compared to forecast of 0.3%. The pair declined nearly 100 pips from the high of 1.30964 made yesterday.

The extraordinary growth in Canadian economy and better than expected inflation has increased bets of rate hike in Sep from less than 20% to one in four.

Technically, pair is facing strong resistance at 1.3100 (50- day MA) and any break above targets 1.31855 (50% fibo)/1.3290.

The near term major support is around 1.2960 (100- day MA) and any break below will drag the pair to next level till 1.2900/1.2850.

It is good to sell on rallies around 1.3045-50 with SL around 1.3100 for the TP of 1.2960/1.2900.

Resistance

R1- 1.3100

R2 –1.3190

R3- 1.3280

Support               

S1- 1.2960

S2- 1.2900

S3-1.2855