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USDCAD : Bullish Breakout Above Rising Channel, Resistance at 1.1220 in Focus

USDCAD : Daily Chart

USDCAD rallying on the daily chart after the release of the lackluster GDP data from Canada. Prior to the release the pair was following a rising channel trend which after the release broke out from the resistance trend line of the rising channel. The 50 day SMA crossed above the 200 day SMA is also signaling an uptrend continuation.

"The official data showed that the Real Gross Domestic product was essentially unchanged in July missing the economist’s estimate for the growth of .2% and below the .3% growth in the month of June. Manufacturing and public sector were the major contributors to growth. Construction, professional services and Retail trade also contributed in growth. Whereas there were some notable decrease in mining and oil and gas extraction as well as in utilities. Other activities like Agriculture, wholesale trade, transportation and warehousing services as well as art, entertainment and recreation also declined."

USDCAD showed a bullish movement on the chart however if the pair loses some ground the resistance at 1.1092 should now act as support for the pair. 

USDCAD : 4 Hour Chart

On the 4 hour chart, the pair is following another rising channel trend and today found support from the rising support trend line of the channel. The pair broke above the resistance at 1.1174 and if is able to hold above it, it might act as support for the pair.

USDCAD : Weekly Chart

On the weekly chart, we can see that there is a resistance at 1.1220 which the pair tested earlier also but failed to rise above it. 50 day SMA is acting as support on the chart. The bullish trend on the pair is showing that the pair might break above this resistance. If it again fails to rise above this resistance, it should find support at 1.0991.

The investors are now waiting for the Consumer Confidence data coming out today at 10:00 AM EDT which might extend the gains for US dollar pushing the pair higher if beats the economist expectations.