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US Trade Balance Weighs on USDCAD

USDCAD extended its losses today after the Trade Balance data came out. On the 4 hour chart, we can see that the pair was consolidating within a descending triangle which gives a bearish signal and it reacted as was expected. It broke down from the support trend line and currently testing the support at 1.0910. If the pair continues to decline the next support level the pair will find is at 1.0891. 

The official data showed that the U.S. trade deficit narrowed to $40.38 billion in March. Economists were expecting the trade deficit to narrow to $40.30 billion in March. Another data showed that the trade surplus in Canada narrowed to C$.08 billion in March which economists were expecting to narrow down to C$.40 billion in March. The weak US trade data weighed on the pair and provided support to the Canadian Dollar.