The Canadian GDP is due out at 8:30 with the expectations of a 0.2% increase for the month of February, and a 2.1% increase for the YoY. Industral Product and Raw Material Prices are also due. From a technical perspective:
- The price made new 7 1/2 month lows on Friday at 0.9798
- The low from September 2011 (the last major low for the pair) came in at 0.9788.
- A break of these levels on a better than expected number opens the door for a move toward the 0.9763 and then 0.9724 (low from August 31st 2011).
- The 0.9650 is channel support on the daily chart (and the next target in a continuation of the trend).
If the data is weaker, a move toward the 100 hour MA (blue line in the chart above) and trendline resistance at the 0.9842 level will be eyed. A break above opens the door for further advance with the 200 hour MA (green line in the chart above) at the 0.9884 the next key target area. The price has not been above the 200 hour MA since last Monday’s trade.
