Loonie jumped some 90 pips against the US dollar after Canadian GDP data showed better than expected results. Monthly GDP figure showed rise by 0.3% in June vs forecasted 0.1% increase while annualized GDP rose by 4.5% in Q2, beating forecast/Q1 result at 3.7%. Canadian dollar pared some of recent strong losses vs dollar on rally to 1.2560 zone so far, as USDCAD pair rose by 0.87% on Wednesday and extended gains today to fresh high at 1.2662 (the highest since 18 Aug). Fresh boost that Canadian dollar received from GDP data would spark further gains and stronger retracement of USDCAD’s 1.2440/1.2662 recovery leg. Fresh post data acceleration took out initial support at 1.2577 (Fibo 38.2%), eyeing next supports at 1.2544 (10SMA / 4-hr cloud base) and 1.2525 (Fibo 61.8% of 1.2440/1.2662). Daily MA’s are turning to full bearish setup, with negative momentum studies and overall action weighed by thick falling daily cloud, being supportive for further easing of USDCAD pair. Solid resistance lies at 1.2616, provided by 20SMA which limited double attempts above it (today/Wed) and maintains downside pressure.
Res: 1.2581; 1.2616; 1.2636; 1.2662
Sup: 1.2544; 1.2525; 1.2500; 1.2443
