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USD/CAD - GDP Reaction and Falling TL

The 1H USD/CAD chart shows the reaction to underwhelming GDP data for March, and Q1. 


(usdcad 1h chart)

The USD/CAD edged down to about 1.0820 overnight, but rallied above the overnight high immediately after the CAN GDP data. 

However, we are seeing the market keep this week's bearish mode. Price is being held down by a falling trendline. The 1H RSI is stalling at 60. Ability to hold the 1H RSI below 60 can reflect bearish momentum developing in this time-frame. 


(usdcad Daily chart)

Here are some key levels to monitor on the daily chart:

R3: 1.10
R2: 1.0940
R1: 1.0885

S1: 1.0815
S2: 1.0740
S3: 1.06

At this point, a break above 1.0940 will be needed to revive a bullish outlook. Otherwise, the market is sideways-bearish, and a break below 1.0810 opens up the 1.0740, then 1.06 levels.