USD/CAD, is the 1.0500 front protected?

FXstreet.com (Chicago) - USD/CAD sails downward, away from 1.06 zone and dipping 0.04% within the past hour. The gains for the day remain positive at 0.12% after fall due to weaker-than-expected durable goods orders data.

Attention shift...or tension shift?

In the US, durable goods orders took a punch at -7.3% vs. expected -3.0% and previous 3.9% along durable goods orders ex transportation at -0.6% vs. 0.6% for the month of July. The Dallas Fed Manufacturing Business Index rose to 5.0 vs. past 4.4. In Canada, GDP data for the second quarter of the year is due Friday. Jack Spits, managing director of FX in Toronto at National Bank of Canada predicts the 1.5% forecast is a miss compared to a previous 2.5%. Fed’s tapering remains a concern but empirical evidence shows FOMC minutes might be on point as September is way too soon for weaker-than-expected data results in the US.

USD/CAD Technical Levels

Technically speaking, the pair trades at 1.0504 between supports at 1.0500 (August 20th highs), 1.0486 (June 29th lows) ahead of 1.0471 (August 22nd lows) and resistances at 1.0526 (July 8th lows), 1.0545 (June 25th highs) followed by 1.0568 (August 24th highs). The FXstreet.com trend index reports the pair as slightly bearish on one-hour timeframe analysis.