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USDCAD : Will it Continue to Surge or Pull Back?

USDCAD : Daily Chart

USDCAD is currently trading near the key resistance at 1.0940 on the Daily chart which previously resisted the pair to move above it. The pair is now again above all the SMAs signaling a bullish bias on the pair and it might break above this key resistance. However the gains remain capped as Canadian data also showed that the country’s gross domestic product grew .4% in May, ahead of forecasts of .3% growth. On a year over year basis the expansion in Canadian economy is in line with the forecast that is 2.3%. If the pair continues to rise above this key resistance the next resistance it would find at 1.1026.

USDCAD : Daily Chart

If we insert the Fibonacci Retrenchment levels on the chart, we can see that the pair broke above the 38.2 fib level, so the nearest resistance is at 50 fib level. If the pair continue to follow the uptrend, the next resistance would be at 61.8 fib level and 50 fib level will then be acting as support for the pair. These levels coincides with the resistance level mentioned in the previous explanation.