The US Dollar traded higher and moved above 1.2750 against the Canadian Dollar.
There is a major bullish trend line forming with support at 1.2720 on the daily chart of USD/CAD.
The Canadian GDP in Feb 2018 (MoM) grew 0.4%, more than the forecast of +0.3%.
Today, the ADP Employment Change for April 2018 will be released, which is forecasted to post 200K.
USDCAD Technical Analysis
The US Dollar started a nice upside move from the 1.2520 swing low against the Canadian Dollar. The USD/CAD pair gained traction and broke a major resistance at 1.2750.During the upside move, the pair succeeded in settling above the 100 (red) and 200 (green) simple moving averages (daily). There was also a break above the 50% Fib retracement level of the last decline from the 1.3124 high to 1.2521 low.However, there is a crucial resistance waiting on the upside near 1.2900-1.2920. The stated zone is a key pivot and acted as a hurdle for buyers many times. It now coincides with the 61.8% Fib retracement level of the last decline from the 1.3124 high to 1.2521 low.Therefore, a break above 1.2900-1.2920 won’t be easy. Should buyers succeed, the pair could move past 1.3000 in the short term. On the flip side, an initial support is at 1.2750. Moreover, there is a major bullish trend line forming with support at 1.2720 on the daily chart.Recently, the Canadian GDP for Feb 2018 was released by the Statistics Canada. The market was looking for a rise of 0.4% in the GDP compared with the previous month.The actual result was better as there was a rise of 0.4% in the GDP, well above the last decline of 0.1%. The report added:
The output of goods-producing industries grew 1.2% as manufacturing and construction rose in addition to the rebound in mining and oil and gas extraction. Services-producing industries edged up 0.1% as increases in most sectors more than offset declines in wholesale trade and in the real estate and rental and leasing sector.
Overall, there could be a downside correction in USD/CAD, but the pair remains supported near 1.2750 and 1.2720.
Economic Releases to Watch Today
Germany’s Manufacturing PMI for April 2018 - Forecast 58.1, versus 58.1 previous.
Spanish Manufacturing PMI for April 2018 – Forecast 54.2, versus 54.8 previous.
Euro Zone Manufacturing PMI April 2018 – Forecast 56.0, versus 56.0 previous.
UK Construction PMI for April 2018 – Forecast 50.5, versus 47.0 previous.
Euro Zone Gross Domestic Product Q1 2018 (QoQ) (Prelim) - Forecast 0.4%, versus 0.6% previous.
Euro Zone Gross Domestic Product Q1 2018 (YoY) (Prelim) - Forecast 2.5%, versus 2.7% previous.
US ADP Employment Change April 2018 - Forecast 200K, versus 241K previous.
During the upside move, the pair succeeded in settling above the 100 (red) and 200 (green) simple moving averages (daily). There was also a break above the 50% Fib retracement level of the last decline from the 1.3124 high to 1.2521 low.However, there is a crucial resistance waiting on the upside near 1.2900-1.2920. The stated zone is a key pivot and acted as a hurdle for buyers many times. It now coincides with the 61.8% Fib retracement level of the last decline from the 1.3124 high to 1.2521 low.Therefore, a break above 1.2900-1.2920 won’t be easy. Should buyers succeed, the pair could move past 1.3000 in the short term. On the flip side, an initial support is at 1.2750. Moreover, there is a major bullish trend line forming with support at 1.2720 on the daily chart.Recently, the Canadian GDP for Feb 2018 was released by the Statistics Canada. The market was looking for a rise of 0.4% in the GDP compared with the previous month.The actual result was better as there was a rise of 0.4% in the GDP, well above the last decline of 0.1%. The report added: