Technical Bias: Bearish
- USDCAD falls to its lowest level since January 20, declining 0.5% to 1.1964.
- US dollar index accelerates decline, falling 1.2% to 94.94.
The USDCAD fell to three-month lows on Wednesday, as disappointing US GDP data resulted in a broad selloff of dollar-denominated assets.
The USDCAD was recovering from daily lows of 1.1955 in the New York session, the pair’s lowest level since January 20. It would subsequently consolidate at 1.1964, declining 0.5 percent. A daily close below the psychological 1.2000 support line could lead to a test of the 1.1888 support. On the upside, initial resistance is likely found at 1.2096.
The 1-hour MACD clearly shows downside momentum, while the RSI indicates a move into oversold territory.
The US dollar is being hammered in the New York session after the Commerce Department said the US economy expanded just 0.2 percent annually in the first quarter, well below already modest forecasts of 1 percent.
The US dollar index accelerates its decline, plunging 1.2 percent to 94.94, a two-month low.