USD/CAD and CAD/JPY Ahead of Canada’s GDP Data

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USD/CAD and CAD/JPY Ahead of Canada's GDP Data

Tomorrow (9/30), we will get the final edition of Canada’s Q2 GDP, which was estimated to have been 0.8%. The loonie, CAD, has been weak against the USD, but generally strong against the JPY. Both USD/CAD and CAD/JPY are in consolidation ahead of the GDP data. Let’s take a look at their charts.

The USD/CAD is consolidating, and even showing a head and shoulders pattern. A break below 1.1120 after the GDP data can open up the 1.1050 area, which should provide support unless USD/CAD is no longer bullish and in a period of consolidation, in which case there could be further downside toward the 1.095-1.10 area. Otherwise, there is still upside risk toward the 2014-high at 1.1278.

The CAD/JPY is consolidating after making a fresh high on the year. If price can break above 98.73 after the GDP data, the bullish continuation scenario is in play with the 99.81 high on the year in sight, as well as the 2013-high right around 101.00. A break below 97.65 can open up the 96.50 level.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.