Technical Analysis: USDCAD battles 13-day-old resistance line before Canadian GDP
USDCAD's recovery moves from 1.3330 are put on the test by a two-week-old resistance line ahead of the Canadian GDP for May. With the market consensus suggesting the recovery in the Gross Domestic Product (GDP) from the previous contraction of 11.6%, the immediate resistance line is likely to keep the prices pressured towards 1.3330 re-test. However, 1.3390/85 may offer an intermediate halt whereas 1.3315/10 region comprising lows marked in March and June could check the bears afterward.
On the upside, a clear break past-1.3450 resistance will aim for July 09 low of 1.3490 before confronting a 200-bar SMA level of 1.3535. If at all the bulls dominate past-1.3535, a downward sloping trend line from June 26, at 1.3570 now, can challenge the pair's further advances. It should, however, be noted that the quote's sustained rise beyond 1.3570 enables it to aim for the monthly high of 1.3645.