The loonie has recently lost its steam and was hit again today after poor GDP data. According to Statistics Canada, GDP growth during March was -0.2%, which was worse than the expected -0.1%. This makes 2 straight months of shrinkage in the Canadian economy since February's GDP growth rate was at -0.1%. "Real gross domestic product decreased 0.2% in March, after edging down 0.1% in February. The decline in March came primarily from mining, quarrying, and oil and gas extraction and retail trade. The mining, quarrying, and oil and gas extraction sector was the main reason for a 0.8% decline in the output of goods-producing industries. Manufacturing and the agriculture and forestry sector were also down. There was a rise in construction output, while utilities were essentially unchanged. The output of service-producing industries was essentially unchanged in March. Notable drops in retail trade and, to a lesser extent, the transportation and warehousing sector were offset by small gains in several service industries. Wholesale trade was also down, while the public sector (education, health and public administration combined) edged up." (StatCan) GDP growth m/m(source: forexfactory.com) The loonie fell across the board. Let's take a look at USD/CAD in particular.USD/CAD 1H Chart 5/31(click to enlarge)Looking at the 1H chart, we can see that even before the GDP data, the USD/CAD was pointing north, but became choppy. The reaction after the GDP data suggests that USD/CAD has anchored upwards and is poised to push towards 1.31, and possibly 1.32 this week. USD/CAD Daily Chart 5/31(click to enlarge) The GDP-reaction today pushes USD/CAD along the path it has been on throughout May with upside towards 1.34. We can see that the 200- and 100-day simple moving averages converge around 1.3340, and there are some common resistance pivots around 1.34. Furthermore, if price does reach this area, we will likely see the RSI tag 70 and enter the overbought area. The rally will be challenged because there is a prevailing medium-term downtrend.Meanwhile, in the short-term, the momentum and price action is pointing north, especially after worse-than-expected GDP data out of Canada. If USDWTI also fails to clear 50.00 and starts to retreat, we should have even more reason to believe that USD/CAD will push towards 1.34.