USD/CAD Struggling to Recover, Holds 1.2500 Handle
The USD/CAD pair's attempted recovery from 1.2500 mark fizzled out near 1.2530 level after the release of monthly Canadian GDP data.
Just ahead of the release the pair recovered from day's through but failed to extend the recovery beyond 1.2530. Moments ago, the Canadian monthly GDP release showed economy shrinking by 0.1% m/m. Although the reading was well below last month’s growth of 0.6% but was still on expected lines. Immediately after the release the pair dropped back to 1.2500 handle and seems to await fresh USD weakness to break through this psychological support, just to recovery back and trade near 1.2530 level.
Technical levels to watch
A convincing break below 1.2500 seems to open room for an accelerated fall towards 1.2425-30 support area. With daily RSI already indicating near-term oversold, the pair is likely to witness some recovery from lower levels.
On the upside, momentum above 1.2530 (hourly) high seems to face resistance at day's peak near 1.2545-50 area, which if cleared should assist the pair back towards 1.2595-1.2600 handle.