USD/CAD deflates from highs post-GDP

The Canadian Dollar picked up extra pace following the release of the GDP figures in Canada, prompting USD/CAD to fade part of the initial up move.

USD/CAD upside still capped around 1.3400

Spot gained some downside pressure after the Canadian economy has expanded in line with expectations in December, 0.3% while it expanded at an annualized 2.6% during the fourth quarter, beating prior surveys.

Despite the knee-jerk, the pair remains poised for further upside in light of the strong sentiment around the buck and rising expectations of a Fed move later this month.

USD/CAD significant levels

As of writing the pair is up 0.27% at 1.3365 and a breakout of 1.3463 (high Jan.3) would aim for 1.3575 (50% Fibo of the 2016 drop) and finally 1.3601 (high Dec.28 2016). On the flip side, the immediate support lines up at 1.3341 (low Mar.3) ahead of 1.3282 (100-day sma) and then 1.3228 (55-day sma).