USD/CAD hits fresh 14-month highs, slightly below 1.3700
|USD/CAD continued to move to the upside and for the second day in a row reached multi-month highs. During the American session, the pair climbed to 1.3696, the highest level since February 2016. From the highs, it pulled back and it is trading at 1.3665, rising for the sixth day in a row.
The Loonie remained unaffected by US and Canadian economic data. Yesterday it made a modest recovery despite the rebound in crude oil prices. Today the WTI barrel is falling marginally, down 0.06% at $48.95.
Today’s GDP data in Canada came in line with expectation. It showed a 0.0% growth rate in February. In the US, according to the first estimate, the economy expanded at a 0.7% rate, below the 1.0% expected. The data had a minor impact on the market.
Canada: GDP was unchanged in February following three months of growth
US: Real GDP increased at an annual rate of 0.7% in the first quarter of 2017
Technical levels
USD/CAD showed overbought reading in many time frame and indicators, but so far, no major signals of a correction. The short-term trend remains bullish, reinforced by the break of the 1.3600 zone.
To the upside, the immediate barrier is the 1.3700 handle. Above the next resistance level might be seen at 1.3735 (Feb 25, 2016 high) and 1.3780 (Feb 09 low). On the flip side, support could be located at 1.3645 (20-hour moving average), 1.3620 (daily low) and 1.3580/85.
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