- USD/CAD bears are in the market which leaves prospects of a correction on the cards.
- Support is playing its role and there is a focus on the Fibo scale.
The Canadian Dollar strengthened on the back of data showing the domestic economy grew stronger than expected in the first quarter. USD/CAD is now breaking important structures as the following will illustrate.
Meanwhile, Canada’s economy expanded at an annualized rate of 3.1% in the first quarter, eclipsing forecasts for an increase of 2.5%, and likely accelerated further in April.
USD/CAD H4 chart
The price is sinking below prior support and is now heading toward the next area of support as illustrated on the charts. A pullback could be on the verge of a correction.
USD/CAD H1
The hourly chart shows that the price is decelerating at this point. This leaves a focus on the upside with 1.36 eyed. However, we may see a commitment from the bears before then.