The US Dollar traded higher towards 1.3350 against the Canadian dollar before starting a correction.
There is a bullish trend line on the hourly chart of USDCAD, which is holding the downside near 1.3280.
The Chinese Gross Domestic Product (GDP) released by the National Bureau of Statistics of China posted an increase of 6.8% in Q4 2016, more than the forecast of 6.7%.
The Chinese Urban investment posted a rise of 8.1%, a bit less than the forecast of 8.3% in Dec 2016, compared with Nov 2016.
USDCAD Technical Analysis
The US Dollar remained in an uptrend against the Canadian dollar, and traded towards the 1.3350 level where it found offers. The USDCAD pair is currently correcting lower, but remains supported near 1.3280.As can be seen from the hourly chart of USDCAD, there is a bullish trend line, which is currently preventing a downside break. Moreover, the 23.6% Fib retracement level of the last wave from the 1.3055 low to 1.3355 high is also acting as a support along with the trend line near 1.3280.So, if the pair holds the trend line support, there is a chance of it gaining strength and moving back towards 1.3320 or 1.3350. The hourly RSI is also supported above 50, which is a positive sign.
Chinese Gross Domestic Product
Today in China, there was a major release, as the Gross Domestic Product (GDP), which studies the gross value of all goods and services produced by China was published by the National Bureau of Statistics of China.The market was aligned for a rise of 6.7% in the GDP in Q4 2016, compared with the same quarter a year ago. However, the result was above the forecast, as there was an increase of 6.8%.When we look at the quarterly change, there was a rise of 1.7% in Q4 2016, compared with the previous quarter. The Chinese Urban investment on the other hand, posted a rise of 8.1%, which was less than the forecast of 8.3% in Dec 2016, compared with Nov 2016.Overall, the result was mixed, but overall positive. It helped the market sentiment in gaining strength. As a result, the pairs like EURUSD, AUDUSD and GBPUSD traded higher.
As can be seen from the hourly chart of USDCAD, there is a bullish trend line, which is currently preventing a downside break. Moreover, the 23.6% Fib retracement level of the last wave from the 1.3055 low to 1.3355 high is also acting as a support along with the trend line near 1.3280.So, if the pair holds the trend line support, there is a chance of it gaining strength and moving back towards 1.3320 or 1.3350. The hourly RSI is also supported above 50, which is a positive sign.