USD/CAD Trades Off Highs as GDP Misses Forecast
- USD/CAD Trades Off Highs as Canadian GDP Misses Forecast
- Sentiment Figures Remain Extreme at -2.11
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The USD/CAD continues to rally higher this week after breaking out above the key 1.3600 level on Tuesday. For Friday’s trading, the pair is now hovering off of new 2017 highs at 1.3671 after this morning’s Canadian GDP (Gross Domestic Product) data release. Expectations for CAD GDP (YoY) (FEB) are forecasted at 2.6%, and released at an actual 2.5%. As one of the last high importance events of the week, traders should continue to monitor the USD/CAD for increased volatility during today’s session.
Technically the USD/CAD may be considered in an uptrend, with the pair trading above both its 10 day EMA at 1.3539 and 200 day MVA at 1.3288 Traders should note that if the USD/CAD closes higher today, it will mark the 6th consecutive higher close for the pair. In the event of bearish reversal, traders should first look for the USD/CAD to trade back below 1.3600. A move below 1.3600 may then expose other values of support, including the 10 day EMA at 1.3539.
USD/CAD, Daily Chart & Averages
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Going into this morning’s GDP data release, USD/CAD sentiment remains at extremes. Currently IG Client Sentiment totals read at -2.11 with 32.2% of traders net-long the pair. With the majority of traders short, typically this suggests that the USD/CAD may continue to trade higher. In the event of a fresh bullish breakout, traders should look for sentiment values to stay at negative extremes. However in the event of a bearish reversal, traders should look for IG Client sentiment to move off of their present values back towards a more neutral reading.
--- 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.