USD/CAD Challenges Daily Support

Aside from impeachment proceedings going on in the U.S. House of Representatives, today was a big day on the financial news front. U.S. Q2 GDP was released to the public and came in right on schedule. The positive figures didn’t do a whole lot for the Greenback, but have driven it north off session lows against several of the majors including the USD/CAD.

GDP releases are a bit strange as they rarely drive markets as expected. Today’s are no different and have come in accordingly:

Event                                              Actual     Projected     Previous

GDP (Q2)                                            2%               2%                  2%

GDP Product Price Index (Q2)      2.6%           2.4%                2.5%

The rise in the GDP Product Price Index (Q2) must be a welcomed sight to FED officials concerned about inflation. The uptick suggests that the prices of consumer goods are growing, a likely result of the FED’s dovish policy of the past three months. 

USD/CAD: Technical Outlook

Earlier today, the USD/CAD put in a hard test of Fibonacci support at 1.3243. The result was a swift market reversal toward the 1.3275 level.

Here are the levels to watch for the remainder of the session:

• Support(1): Bollinger MP, 1.3255
• Support(2): Current Wave 38%, 1.3243
• Support(2A): Daily SMA, 1.3243

Overview: For the time being, it looks like weakness in WTI crude oil and a positive set of GDP figures are driving this market higher. The key number to watch for the USD/CAD is 1.3243. If we see settlement above this area, then an extended rally may set up by Friday’s closing bell.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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