USD/CAD slides by 71.5 pips amid GDP releases

Second half of Thursday the currency rate spent in a three consecutive spikes that amounted to 40, 35 and 28 basis points and, altogether, drove the pair though the weekly S1 at 1.2476, the 55- and 100-hour SMAs, the weekly S2 at 1.2552 and the 200-hour SMA at 1.2561. This was the first major advance since announcement of the Canadian Overnight Rate two weeks ago. However, a release of information on the Canadian GDP today forced the currency pair to fall by 71.5 basis points. Nevertheless, after the markets will cool down, there is high chance that the climb would resume, which might be another of transformation of the general downtrend that guided movement of the pair over the last three months. On the other hand, it might make a correction and return into a well-established channel down that is clearly seen on daily chart.