USD/CAD Outlook: Loonie Tumbles after Weak Canada GDP Data

Technical analysis of Forex market

The Canadian dollar fell almost a hundred pips against its US counterpart on Friday, pressured by downbeat Canada’s GDP data.

Canada’s economy grew 0.4% y/y in Q4, decelerating significantly from Q3 growth of 2%.
Monthly figure also disappointed expectations (Dec m/m -0.1% vs 0.0% f/c) in line with previous month release (-0.1).

The growth slowed mainly due to lower crude oil export prices and is at its lowest pace since Q2 2016.

– advertisement –

Today’s USDCAD’s bounce pushed the price from dangerous zone after descend from 1.3340 (14 Feb high) based at 1.3120 zone and was contained by rising 200SMA (currently at 1.3156).

Fresh recovery surged through barriers provided by 10;20 &30SMA’s and so far retraced over 50% of 1.3340/1.3112 bear-leg.

Near-term sentiment is turning positive and daily techs improved, setting scope for further advance.

Bulls pressure 100SMA/Fibo 61.8% of 1.3340/1.3112 (1.3251), break and close above which would add to positive outlook.

Weaker than expected US personal spending data (Dec -0.5% vs -0.2% f/c and 0.6% prev) showed minor negative impact, with focus turning on US ISM Manufacturing PMI data for fresh signals.

Res: 1.3251; 1.3286; 1.3310; 1.3340
Sup: 1.3226; 1.3212; 1.3190; 1.3156

Signal2forex reviews