USD/CAD challenges resistance at 1.3100

USD/CAD has risen to challenge the 1.3100 level during the American session, with the loonie under pressure on the back of lower-than-expected GDP figures and despite higher oil prices, while the greenback is gathering pace across the board.

The pair has risen more than 80 pips over the last hours, as data showed Canada's gross domestic product expanded at a 2.4% annualized rate in the first quarter of 2016 up from a downwardly revised 0.5% advance in the fourth quarter 2015, but below market consensus of a 2.9% increase.

USD/CAD has peaked at 1.3100 in recent dealings, but is struggling to confirm a break above the psychological level. It was last at 1.3098, recording a 0.39% gain on the day.

USD/CAD technical levels

In terms of technical levels, if the pair breaks decisively above 1.3100 next resistances line up at 1.3132 (May 25 high), 1.3187 (May 24 high). On the other hand, supports are seen at 1.2980 (20-day SMA), 1.2917 (50-day SMA) and 1.2836 (May 17 low).