USDCAD trades higher for the fourth day in a row in quiet trading ahead of the Christmas holidays. The pair trades 0.08% higher at 1.3156. The Canadian dollar was under selling pressure yesterday after disappointing GDP data. The GDP contracted by 0.1% in October missing the market consensus.
In the United States the Chicago Fed National Activity Index registered at 0.56, beating expectations of -0.09 for November. The U.S. Durable Goods Orders came in at -2%, below analysts estimate of 1.5% for November, while the Durable Goods Orders ex Transportation came in at 0%, below expectations (0.2%) in November.
USDCAD rebounded from two-month lows on Thursday and kept the positive momentum after the Canadian GDP disappointment. The upward move gave the bulls a breath but the outlook is still negative.
On the upside, initial resistance for the pair will be met at 1.3167 the daily top. Next level to the upside where the pair will meet selling pressure is at 1.3180 the high from December 20th. The 50-day moving average is the next critical resistance.
On the flip side, first support for the pair stands at 1.3136 the daily low. A credible break below will pave the way for a move down to 1.3101 the low from December 18th. More bids will emerge at 1.3041 the low from October 29th at 1.3041.