FXstreet.com (Barcelona) – The Canadian dollar is extending its correction higher against the greenback despite the increasing risk aversion. The CAD gained traction after the Canadian GDP figures showed an annualized expansion of 0.6%, in line with expectations.
According to the analysts at TD Securities, “While we have to allow for some corrective movement lower in the USD in the short-term, we still rather think that the bigger picture trend here is higher. USD losses should remain limited. The push through 1.0275 (76.4% retracement of the 1.0446/0.9632 drop last year) this week is supportive of the idea of a full retracement back to 1.0445/50”.
The cross is losing 0.21% at 1.0284 with the next support at 1.0217 (low Feb.28) ahead of 1.0206 (low Feb.25) and then 1.0160 (low Feb.22).
On the flip side, a breakout of 1.0342 (high Jun.29 2012) would expose 1.0363 (high Jun.28 2012) and then 1.0382 (high Jun.6).