USD/CAD drops like a rock as the Canadian data have impressed earlier. The good figures have boosted the Loonie. Unfortunately, the current drop will invalidate the last days’s breakout above some very important resistance levels. The greenback has taken a hit also from the United States data, which has disappointed.

Price could reach a very strong dynamic support in the upcoming hours, it seems unstoppable right now. The dollar depreciated versus the Loonie even if the USDX is trading in the green. The currency pair is driven lower by the fundamental factors, so remains to see how will close the day.

The Canadian Employment Change was reported at 79.5K, much above the 10.2K estimate and above the 35.3K in the former reading period, while the GDP surged by 0.2% in the third quarter, beating the 0.1% estimate, it has impressed as after the 0.15 drop in the former reading period. Moreover, the Unemployment Rate dropped unexpectedly, from 6.3% to 5.9% in November, this is the lowest rate since January 2008. The Manufacturing PMI increased from 54.3 to 54.4 points, the Loonie was boosted by the impressive data.

Unfortunately, the greenback has taken a hit from the ISM Manufacturing PMI, which has dropped from 58.7 to 58.2 points, much below the 58.4 estimate. The ISM Manufacturing Prices indicator was reported at 65.5 points, much below the 67.0 estimate.

You can see on the daily chart that the rate has plunged and failed to reach and retest the 1.2916 previous high and now is almost to reach the median line (ml) of the blue descending pitchfork. It could also retest the median line (ML) of the major red descending pitchfork, we’ll see how will react when will hit these crucial downside obstacles. Could rebound in the start of the next week if will close and will stabilize above the mentioned support levels and above the 1.2655 static support level.

However a valid breakdown below the mentioned levels will confirm a drop at least till the 1.24604 downside obstacle.