The USDCAD accelerated lower and broke below 1.30 support on Friday after data showed Canada’s economy expanded more than expected (July GDP 0.2% vs 0.1% f/c and 0.0% in June), supporting expectations for BoC’s rate hike next month.
Fresh bearish acceleration comes after Thursday’s strong upside rejection at 1.3082 (just under the base of thick daily cloud) which left daily candle with long upper shadow and signaled growing downside pressure.
Near-term structure weakened after fresh bears retraced over 50% of 1.2884/1.3082 recovery leg, while daily techs remain in bearish mode and favor further downside.
Bears found footstep at 1.2970 (10SMA), ahead of lower pivots at 1.2959 (Fibo 61.8% of 1.2884/1.3082) and 1.2927 (cracked top of weekly cloud), break of which is needed to confirm lower top and re-focus key support at 1.2884 (20 Sep low).
Res: 1.3000; 1.3024; 1.3054; 1.3087
Sup: 1.2970; 1.2959; 1.2927; 1.2884
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