USDCAD recovers on strong US and mixed Canada’s data
The USDCAD pair rallied at the beginning of the US session, supported by rise in US consumer spending and fall in US weekly jobless claims.
US consumer spending rose
Canadian dollar is retracing Thursday’s strong rally, inspired by hawkish BoC, as stronger dollar on positive US data and mixed Canada’s GDP data depressed the loonie.
US consumer spending rose 0.6% in Apr, beating forecast for 0.4% rise, while jobless claims fell to 221K from 234K.
At the same time, Canada’s GDP (m/m) rose 0.3% in Q1 vs 0.2% forecast, but annualized figure showed weaker than expected pace on 1.3% rise, compared to 1.8% forecast and 1.7% previous.
Fresh bullish acceleration from 55SMA which managed to contain repeated attacks, improves near-term picture on return above a cluster of daily MA.
Recovery rally cracked the mid-point of 1.3046/1.2818 fall, offsetting strong negative signal from Wednesday’s 1.06% fall.
Close above broken Fibo 38.2% of 1.3046/1.2818 is needed for bullish signal for extension towards 1.2959 (Fibo 61.8%) and possible attack at psychological 1.30 barrier.
Bearish signal could be expected on break and close below rising 10SMA (1.2895).
Res: 1.2932; 1.2959; 1.3000; 1.3046
Sup: 1.2895; 1.2866; 1.2829; 1.2818