USD/CAD extends the bounce to 1.3400, US GDP eyed

Pablo Piovano FXStreet

The greenback keeps the constructive tone vs. its Canadian neighbour at the end of the week, with USD/CAD now looking to retake the 1.3400 handle.

USD/CAD focus on US GDP, oil

Spot keeps the march north unabated today, although a sustainable breakout of the 1.3400 barrier still remains elusive, probably waiting for a stronger catalyst which is likely to come from the USD-side, as market consensus expects today’s US GDP figures to show an annualized expansion of 2.5% during the third quarter.

In the meantime, CAD remains on the defensive following a negative week for crude oil prices in spite of the unexpected decrease in crude oil supplies reported by the DoE during last week. The barrel of West Texas Intermediate is navigating the area of $49.70, up smalls for the day and ahead of the report of US drilling activity by Baker Hughes.

Further data in the US docket will see the final print of Consumer Sentiment for the month of October tracked by the Reuters/Michigan index.

USD/CAD significant levels

As of writing the pair is gaining 0.04% at 1.3390 and a breakout of 1.3408 (high Oct.27) would open the door to 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the flip side, the immediate support aligns at 1.3238 (20-day sma) ahead of 1.3103 (200-day sma) and then 1.3002 (low Oct.19).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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