Following on from my recent posts about the bearish nature of the CADUSD and the medium term prospects for the Loonie, today’s advance GDP release has helped to drive the Canadian lower once again, accelerating its downwards progress and adding to yesterday’s wide spread down candle. This candle tested the platform of support in the 0.9200 region which, on today’s release, now appears to have been breached with the pair currently trading at 0.9183, at time of writing.
This is key price level as it marks the upper region of the price congestion built during May and June and with a consequent floor in place at the 0.9110 region. Should today’s candle close well below the 0.9200 level, then this region will have been penetrated, and provided today’s trading volumes confirm the price action then we can expect to see a deeper move still for the CADUSD and a test of the support area at 0.9110.
By Anna Coulling