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Hugo in HTO Trading,

USDCAD: Inside day holding at 50 day moving average

US numbers have been showing mixed signals, with signs of weakness on the continuing jobless claims front and strength on the gross domestic product annualized and decreasing initial jobless claims.

On today’s economic agenda we have from Canada the gross domestic product annualized that is expected to rise to 2.7% showing some signs of economy recovery. On the other hand from the U.S. the core personal consumption expenditure year-over-year is expected to stay unchanged.

The USDCAD initially fell during the course of yesterday session but closing near the open, holding at the 50 day moving average but breaking the neckline of the double top pattern. Also was an inside day showing some market compression.

Expecting a downward move to 1.0744 on a break below previous day low at 1.0836 (scenario 1) or a break above previous day high at 1.0869 could push USDCAD to a daily resistance at 1.0954 (scenario 2).