GDP comes in at 0.2% vs 0.2% estimate
The Canada GDP came in at 0.2% vs 0.2% estimate. The y/y came in at 3.3% vs 3.4 estimate.
The price of the USDCAD initially dipped after the news but has since rebounded. US data may also have played a role although data was a bit mixed vs. expectations.
Technically, looking at the daily chart, the USDCAD moved below the key 1.3000 level yesterday but closed right around the key level. Since September of 2016, there were only 3 days where the price traded below that level (in Jan/Feb) with no closes below. There have also been a number of swing lows that bottomed against the level. Getting below and staying below is more bearish.
Today, the price has explored lower with a new low of 1.2945 being made after the release of the economic data. However we are seeing a rebound higher.
Drilling to the 5-minute chart, the price rebound has taken the price to trend line resistance on that chart. That level comes in at 1.2989. The 100 and 200 bar MAs on that chart are around the level. A move above will have traders looking toward the 1.3000-10 area (where the swing lows off the daily are centered around (red circles in the daily chart). So far, however,that trend line and MAs are stalling the rally by intraday traders and perhaps early sellers against the 1.3000 level.
So there are some quick buyers off the lows. The retracement is stalling against intraday resistance (bearish) and stays below the KEY 1.3000-1.3010 area.