According to RBC Capital Markets, Canada’s GDP shrunk by 0.1% in November 2011 against the forecast of +0.2%. Another surprise was a 0.7% retail price decline. Commodity prices shrunk by 0.2%.
These stats affected the Canadian Dollar. It is previous strength is explained by the weakness of its US counterpart. Investors switched to riskier assets after EU leaders reached an agreement on the Greek debt.
In the meantime, USDCAD has reached one of the bearish targets given in the outlook for Jan 30th 2012. At this point, sub-wave A(C )/C H4 inside wave 3/C of Daily is over. According to the Department of Masterforex-V Trading System , the closest targets are 0.9944, 0.9890 and 0.9922. A break above the local high 1.0052 will trigger an upswing – wave A/B of H2. The closest resistance is 1.0069.
