USD/CAD Moves on Support After GDP Data
- USD/CAD Prices Decline as GDP Figures Meet Expectations
- Next Support for the USD/CAD is Found at 1.3352
- Looking for additional trade ideas for US Dollar based currency pairs? Read our Dollar Forecast
The USD/CAD has declined to weekly lows this morning, despite Canadian GDP figures meeting expectations. Today’s GDP numbers were expected and released at +1.3% (YoY) (Aug). Now, the USD/CAD is trading towards support of an ongoing trading range. The range may be seen below, and is formed by first finding support by connecting a series of lows near 1.3352. Alternatively, resistance for the identified range is found near the October 28th high at a price of 1.3433.
USD/CAD, 4Hour Chart with Range
(Created Using TradingView Charts)
If the USD/CAD remains supported above 1.3352, traders may elect to trade the range in anticipation of prices rising back towards resistance. In this scenario, traders may look to buy the market near support and target a fully extension of the range toward resistance at 1.3433. If markets continue to range, sell orders for the USD/CAD may be considered against resistance, and this time target a move in the USD/CAD back towards support.
In range bound markets, traders may also elect to wait for a market breakout before trading. Bearish breakouts for the USD/CAD may being beneath the previously mentioned value of support. In this bearish scenario, traders may extrapolate a 1X extension of the 81 pip range to find initial pricing targets near 1.3271. In the event of a price bounce from support, and an eventual bullish breakout above resistance, traders may extrapolate initial targets near 1.3514.
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.