Forex Technical Update
GDP and Inflation Data
- The -0.3% m/m GDP data for May, -0.3% producer price index, and -2.2% raw materials price index were very CAD-negative data.
- With these releases, the USD/CAD pushed above 0.9520-0.9525 resistance, completing a double bottom.
- 0.9640 is the target because there is a major resistance cluster there: 200SMA, 61.8% retracement, and a common pivot.
- Then if the market is falling from there, it will be interesting to see if the 0.9520 pivot will become support. If yes, there is a chance for bottom forming.
- If not, the USD/CAD is likely going to resume the downtrend towards lower targets: 0.9320, 0.9056.
Do you trade the Canadian Dollar? Do you watch oil prices? Subscribe and become a member to share your views and join live discussions as well as webinars about the markets.
Fan Yang CMT
Chief Technical Strategist