The USD/CAD rallied sharply yesterday after poor CAN GDP data for the month of February. The significance of the data and the immediate reaction was tested as the market approached 0.99. A break above 0.9940 would reflect a significant reaction and shelve the bearish outlook. However, the market held even below 0.99, and the declining trendline seen in the 4H chart.
The4H chart also shows the RSI failing to break above 60. This shows persistent bearish momentum developing especially if the RSI now falls below 40. Price action is heavy and threatens to revisit the 0.98 low. 0.9720 is the next lower support pivot. Below that we open up lows in the 0.94-0.9450 area.
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Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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