Sasha Singh
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USDCAD : Found Support After Canada's GDP Report, But Gains Seems Limited

USDCAD today found some support after the release of the Canada’s GDP Report. 

  

According to the data the real gross domestic product grew .1% in April with the same pace as in March missing the economist’s expectation for an increase by .2%. The service industries increase .3% in April led by wholesale and retail trade however the goods producing industries fell .3% as a result of declines in all subsectors except manufacturing.

(USDCAD : 4 Hour Chart)

On the 4 Hour Chart, the pair was trading within a falling wedge giving a bullish signal and today it broke out from the resistance trend line of the wedge after the release of the GDP report. After inserting a Fibonacci Retrenchment levels on the chart the nearest resistance the pair will find is at 23.6 fib level that is at 1.0729 or from the 50 day SMA. All the moving averages on the chart are giving a bearish signal so the upside seems limited.