USD/CAD breaks above 1.3500 after US, Canada data

USD/CAD extended gains and broke above the 1.35 mark, following the release of a series of North American indicators.

USD/CAD rose sharply, with the dollar underpinned by strong GDP and durable goods orders and the CAD weighed by lower-than-expected CPI reading, reaching a fresh 3-week high of 1.3519 in recent dealings. At time of writing, the pair is trading at 1.3515, up 0.79% on the day.

On the data front, US gross domestic product expanded at an annual rate of 3.5% in the third quarter, up from 3.2% estimated last month while orders for durable goods declined 4.6% in November, still above the 4.7% fall expected. Meanwhile in Canada, data showed CPI slowed in November to 1.2% YoY from 1.5% in October.

USD/CAD levels to consider

As for technical levels, next resistances are seen at 1.3536 (Nov 28 high), 1.3564 (Nov 18 high) and 1.3600 (psychological level). On the other hand, supports could be found at 1.3408 (Dec 22 low), 1.3351 (50-day SMA) and 1.3320 (20-day SMA).