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USD/CAD consolidates near daily lows

FXStreet (Córdoba) - USD/CAD entered a consolidation phase near daily lows after a better-than-expected Canadian GDP gave the Loonie a boost and sent the pair to a 5-day low at the beginning of the American session.

USD/CAD bottomed out at 1.2432 following data that showed annualized Canadian gross domestic product grew by 2.4% in Q4 versus 2.0% expected. Strong GDP figures support the view the Bank of Canada will keep its target rate steady at 0.75% when it announces monetary policy on Wednesday.

USD/CAD found support at the 1.2430 area and has spent the last hours in a slim range. At time of writing, the pair is trading at 1.2460, still 0.59% below its opening price.

USD/CAD levels to watch


As for technical levels, USD/CAD could find immediate supports at 1.2432 (daily low), 1.2400 (psychological level) and 1.2387 (Feb 26 low). On the flip side, resistances are seen at 1.2495 (21-day SMA), 1.2543 (daily high) and 1.2565 (Mar 2 high).

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