USD/CAD falls further to test support area after US GDP

USD/CAD fell further and printed fresh 3-day lows following the release of lackluster US gross domestic product data.

Data showed US economy grew a modest 1.1% ion the second quarter, at a slower pace than the 1.2% initially estimated. 

The US dollar weakened broadly following the release, falling to test the 1.2860 support zone against the loonie. At time of writing, USD/CAD is trading at 1.2867, down 0.41% on the day.

Now all eyes turn to Federal Reserve Chair Janet Yellen, who is due to speak at 14:00 GMT at Jackson Hole Symposium.

USD/CAD levels to watch

As for technical levels, if USD/CAD breaks below 1.2860, next supports are seen at 1.2800 (psychological level) and 1.2763 (Aug 19 low) ahead of 1.2710 (Jun 24 low). On the other hand, resistances could be faced at 1.2923 (100-day SMA), 1.2964 (Aug 22 high), 1.2990 (50-day SMA).