USD/CAD slides below 1.3000 to test 2017 lows

The Loonie is rising for the fourth day in a row against the US dollar amid growing expectation of a possible rate hike from the Bank of Canada and amid a weak greenback in the market. Also today, rising crude oil prices are helping the Loonie. The WTI barrel is up 1.30% today, the sixth gain in row. The higher-than-expected third reading of US Q1 GDP did not offer support to the dollar. 

US: Real GDP increased at an annual rate of 1.4% in the first quarter of 2017

USD/CAD broke recently below 1.3000 and fell to 1.2985, reaching the lowest level since early February. The pair is headed toward the 2017 low that is located at 1.2969 (Jan 30 low). The bearish momentum remains strong despite some oversold readings in short-term technical indicators. 

Levels to watch 

Yesterday the slide of the US dollar pushed USD/CAD to beak the 1.3150/1.3200 strong support area, that opened the doors to a continuation of the decline.

The pair is moving in line with the current trend. The immediate support could be seen at 1.2965/70 (Jan low), followed by the area 1.2930/40 and 1.2860 (Jul 14 & 15 low). On the upside, resistance is seen at 1.3045 (daily high), 1.3115 and 1.3145 (Jun 27 low).