USDCAD breaks 1.2590 key support ahead of Canada Q2 GDP
USDCAD smashes a convergence of 200-SMA and an ascending support line from July as the pair traders await Canada’s Q2 GDP details, up for publishing around 12:30 GMT. Given the RSI conditions having a meager room to the south before hitting the oversold signals, the latest fall may pause around the 1.2500 round figure, if not then a horizontal line stretched from July 30, near 1.2490, will challenge the pari sellers. If Canadian GDP favors the CAD bulls, or USD lures more bears, the last month’s low near 1.2420 and the 1.2400 round figure will be in focus.
Alernatively, a corrective pullback needs to sustained beyond 1.2590 to convince short-term buyers. Even so, 61.8% Fibonacci retracement of July–August upside, near 1.2620, followed by a downward sloping trend line from August 20, around 1.2635 challenge the USDCAD bulls. Should the pair buyers manage to cross 1.2635, Friday’s swing high near 1.2710 may check the upside momentum targeting the 1.2800 round figures and the monthly top surrounding 1.2950.
Alernatively, a corrective pullback needs to sustained beyond 1.2590 to convince short-term buyers. Even so, 61.8% Fibonacci retracement of July–August upside, near 1.2620, followed by a downward sloping trend line from August 20, around 1.2635 challenge the USDCAD bulls. Should the pair buyers manage to cross 1.2635, Friday’s swing high near 1.2710 may check the upside momentum targeting the 1.2800 round figures and the monthly top surrounding 1.2950.