FXstreet.com (Barcelona) - After falling around 0.65% from the 1.2617 opening price to test the 1.2500 support line, the USD/CAd has been rebounded to trade above 1.2540. Currently, the pair is trading around 1.2530/40. Along the European session, USD/CAD has been traded in a 1.2505/50 small channel.
According to Hans Nilsson, analyst at CMS Forex, USD/CAD rose on risk aversion and oil down prices: The USD/CAD rose on increased risk aversion and plunging oil prices. The pair broke the short-term downtrend today. Canada's GDP for January is expected to contract 0.7% m/m. That would be a 6th consecutive monthly decline and may induce the Bank of Canada to revive the economy by using unconventional measures. Since late-October, the USD/CAD has tested the important 1.30-area resistance four times. If stock-market consolidation continues, a fifth test of the 1.30-area resistance will be possible. There are minor resistance in the 1.28 area and support in the 1.22.