Following on from my recent posts about the bearish nature of the USDCAD and the medium term prospects for the Loonie, today’s advance GDP release has helped to drive the Canadian lower once again, accelerating its downwards progress and adding to yesterday’s wide spread down candle.

This candle tested the platform of support in the 0.9200 region which, on today’s release, now appears to have been breached with the pair currently trading at 0.9183, at time of writing.

This is key price level as it marks the upper region of the price congestion built during May and June and with a consequent floor in place at the 0.9110 region.

Should today’s candle close well below the 0.9200 level, then this region will have been penetrated, and provided today’s trading volumes confirm the price action then we can expect to see a deeper move still for the USDCAD and a test of the support area at 0.9110.

Anna Coulling is a trader with over 16 years’ experience and founder of AnnaCoulling.com