USD/CAD testing lows near 1.3440, US GDP on sight

Pablo Piovano FXStreet

The broad-based weakness around the greenback is encouraging USD/CAD to shed further ground and test the area of daily lows in the 1.3450/40 band.

USD/CAD attention to US GDP

The pair is eroding part of yesterday’s significant rebound to the boundaries of 1.3500 the figure in response to the continuation of the selling bias surrounding the greenback and the moderate recovery in crude oil prices.

In fact, the barrel of West Texas Intermediate is posting mild gains around the $49.00 mark after Thursday’s OPEC-led slump to the low-$48.00s.

In the US, yields are challenging weekly lows and narrowing the gap vs. their Canadian peers, all lending oxygen to CAD.

Recall that the Canadian Dollar grabbed some extra support earlier in the week following the unexpected constructive tone from the Bank of Canada at its monthly meeting.

On the data front, the second revision of Q1 GDP, April’s durable goods orders and the final print of May’s consumer sentiment gauged by the Reuters/Michigan index are all due in the US docket.

USD/CAD significant levels

As of writing the pair is losing 0.33% at 1.3440 and a break below 1.3385 (low May 25) would aim for 1.3356 (76.4% Fibo of the April-May rally) and finally 1.3349 (100-day sma). On the flip side, the next up barrier is located at 1.3508 (50% Fibo of the April-May rally) seconded by 1.3541 (high May 24) and then 1.3575 (38.2% Fibo of the April-May rally).

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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