Canadian dollar Strengthens Sharply Ahead of GDP Results, 25+ PIP Volatility Likely; March 02, 2021

Canada GDP m/m

Today Canada has scheduled to release monthly GDP results for the December 2020 at 1330 GMT/1900 IST. It’s the broadest measure of economic activity and the primary gauge of the economy’s health. It is released about 60 days after the month ends. If the actual results come higher than forecasted, it will be good for Canadian dollar.

Let’s see how CAD has reacted during the previous data release:

Jan 29:

Dec 23:

Technical View:

USD/CAD: The Canadian dollar erases previous loss against U.S. dollar and currently stabilizes around 1.2650 mark. The pair made intraday high at 1.2698 and low at 1.2637 mark. A day chart with triple EMA still suggests the bearish trend while H1 chart for the short run confirms the uptrend. A sustained close below 1.2610 will test key supports. Alternatively, reversal from here will take the parity back above 1.2700 marks.

Key Resistances: 1.2692, 1.2740, 1.2768, 1.2800, 1.2845

Key Supports: 1.2610, 1.2584, 1.2555, 1.2520, 1.2490

Take a look and do trade wisely!
Good Luck