The USD/CAD pair crashed in the last two hours and now is located at 1.3224 at the time of writing, far below today's high of 1.3284. The DXY's sell-off weakened the greenback which depreciated versus all its rivals. Technically, the currency pair confirmed exhausted buyers and announced a new sell-off.
Surprisingly or not, the CAD rallied, even though the Canadian GDP came in worse than expected, registering a 0.0% growth compared to the 0.2% growth expected. On the other hand, the US reported mixed data. The Revised UoM Consumer Sentiment and Personal Income came in better than expected, Core PCE Price Index matched expectations, while Chicago PMI and Personal Spending reported poor data.
USD/CAD Aggressive Breakdown!
Technically, the currency pair registered only false breakouts above 1.3276, failing to approach and reach the upper median line (uml). The false breakouts from the range between 1.3239 and 1.3276 levels announced exhausted buyers and signaled an imminent breakdown.
After its massive sell-off, the rate could test and retest 1.3239 and the median line (ml) before resuming its sell-off.
USD/CAD Outlook!
Breaking below 1.3239 under the median line (ml) was seen as a selling signal with a first downside target at the weekly pivot point of 1.32. The lower median line (lml) is seen as a target as well.
