The Canadian economy unexpectedly declined in the second quarter, with the USDCAD exchange rate at 1.35491.
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- The Canadian economy unexpectedly contracted during the second quarter.
The pair currently trades last at 1.35491.
The previous day high was 1.3558 while the previous day low was 1.3504. The daily 38.2% Fib levels comes at 1.3525, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3537, expected to provide support.
The USD/CAD broke above 1.3520 and surged to 1.3556, approaching Thursday’s highs, following the release of the US employment and Canadian Q2 reports.
Canada’s real Gross Domestic Product (GDP) unexpectedly contracted at an annual rate of 0.2% in the second quarter, against expectations of a 1.2% expansion. Growth figures from the first quarter were revised lower, from a 3.1% expansion to 2.6%.
The disappointing data weighed on the Loonie, which weakened across the board after the release. Next week, the Bank of Canada (BoC) is set to meet, and no change in policy is expected, especially considering the growth figures. The upside move in USD/CAD was limited due to some weakness in the US dollar following the official US employment report.
Nonfarm Payrolls expanded by 187,000 in July, surpassing the market’s expectation of 170,000. The Unemployment Rate rose from 3.5% to 3.8%. Average Hourly Earnings increased 4.3% from a year ago, below the expected 4.45%. The US Dollar Index dropped to 103.25, hitting a fresh daily low, but later trimmed losses to rise to 103.50.
Early on Friday, USD/CAD bottomed at 1.3489, the lowest level since August 16. It then rebounded moderately, gaining upside momentum after the data.
The pair is currently rising after falling for four consecutive days and is holding above the 20-day Simple Moving Average (SMA) that stands at 1.3515.
On the weekly chart, USD/CAD is still down and is on track to post its first weekly decline after six consecutive weeks of gains.
Technical Levels: Supports and Resistances
USDCAD currently trading at 1.3544 at the time of writing. Pair opened at 1.3509 and is trading with a change of 0.26 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.3544 |
| 1 | Today Daily Change | 0.0035 |
| 2 | Today Daily Change % | 0.2600 |
| 3 | Today daily open | 1.3509 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3503, 50 SMA 1.3338, 100 SMA @ 1.3394 and 200 SMA @ 1.3462.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.3503 |
| 1 | Daily SMA50 | 1.3338 |
| 2 | Daily SMA100 | 1.3394 |
| 3 | Daily SMA200 | 1.3462 |
The previous day high was 1.3558 while the previous day low was 1.3504. The daily 38.2% Fib levels comes at 1.3525, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3537, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.3489, 1.347, 1.3436
- Pivot resistance is noted at 1.3543, 1.3577, 1.3596
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3558 |
| Previous Daily Low | 1.3504 |
| Previous Weekly High | 1.3640 |
| Previous Weekly Low | 1.3496 |
| Previous Monthly High | 1.3640 |
| Previous Monthly Low | 1.3184 |
| Daily Fibonacci 38.2% | 1.3525 |
| Daily Fibonacci 61.8% | 1.3537 |
| Daily Pivot Point S1 | 1.3489 |
| Daily Pivot Point S2 | 1.3470 |
| Daily Pivot Point S3 | 1.3436 |
| Daily Pivot Point R1 | 1.3543 |
| Daily Pivot Point R2 | 1.3577 |
| Daily Pivot Point R3 | 1.3596 |
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