USD/CAD Plummets Due To Fundamentals

Technical analysis of Forex market

During Wednesday’s afternoon, US Final GDP, Consumer Confidence and Building Starts data showed contradicting information, which was represented by a wide hourly candle. The rate bounced between the borders of the minor scale channel down pattern until the pattern’s support broke.

The event was followed by a sharp decline to the support levels at 1.2835/1.2850. However, on Thursday morning, the support levels failed, and by mid-day the rate was approaching the December 16 and 17 high level zone near 1.2810.

If the USD/CAD declines below the 1.2810 level, the 1.2800 mark might immediately provide support. Below the 1.2800 mark, the December 16 low level at 1.2765 might act as support.

Meanwhile, a recovery of the rate would most likely find resistance in the 1.2835/1.2850 zone.