• The USDCAD moves lower on Canadian GDP Data
• Today’s range measures 116 pips
• R4 breakouts begin at 1.5477
The USDCAD has moved off key points of resistance this morning after the release of Canadian GDP data for the month of June. Year over year, GDP was expected to be released at .4%. However with a better than expected print of .6% the CAD has quickly rallied against the USD and other major currencies. This has caused the pair to move back inside of today’s 116 pip trading range, starting with a drop below the R3 at 1.3197. If prices continue to decline the next major value of support is found at 1.3081, represent by the S3 displayed below.
If prices continue to decline below the S3 , it is worth noting that prices have closed down in the previous four trading sessions. Traders looking for a breakout, should continue to monitor today’s S4 found at 1.3023. A move to this point would add validity to the USDCADs decline on the creation of a new lower low. Alternatively, in the event of a reversal, traders will watch for a move back through the previously mentioned trading range, as well as attempt to break above the R4 found at 1.3254. In this scenario, it should be recognized that the current down trend would be considered at least temporarily invalidated.