Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

Canada GDP Grew 0.4% in June; a Look at USD/CAD

Canada's Gross Domestic Product grew 0.4% in June. This is the 4th straight month of increase, and was broad based. The forecast had called for a 0.3% increase.

(source: StatCan)
Here is the breakdown of the GDP components and their contributions to June's 0.4% growth:

(source: StatCan)
The USD/CAD has been bullish in July. The stronger-than-expected GDP data might be able to give the loonie a boost in the short-term, but it might not be enough to put USD/CAD back into a bearish trend.

If there is a pullback, look out for support at the 1.08-1.0815 support/resistance pivot area. If price can hold above this area, there is still upside risk to 1.0960, 1.10, and the 1.1052 April-high.
Otherwise, a break below 1.0790 can revive the bearish trend at least toward the 1.0620 low.

(USD/CAD Daily Chart 7/31)