USD/CAD Price Analysis: Bulls brace for another battle with 21-DMA ahead of Canada GDP, US inflation clues
- USD/CAD picks up bids to refresh intraday high, reverses the previous day’s retreat from two-week top.
- Sustained trading beyond 1.3200 support confluence, strongest bullish MACD signals in a month favor Loonie pair buyers.
- 21-DMA, previous support line will challenge bulls amid steady RSI.
USD/CAD renews its intraday high near 1.3265 as the US Dollar picks up bids amid the early hours of Friday’s European session.
In doing so, the Loonie pair reverses the previous day’s U-turn from the highest levels in a fortnight. It should be noted that the quote marked the failure to cross the 21-DMA hurdle.
Hence, the latest recovery eyes another battle with the stated immediate DMA hurdle surrounding 1.3280.
It’s worth observing that the steady RSI (14) line and the MACD indicator’s strongest bullish signals since late May underpin hopes of the USD/CAD pair’s advances past the 21-DMA resistance of 1.3280.
In that case, the previous support line stretched from early February, close to 1.3350 at the latest, will be crucial to watch.
Should the Loonie pair manage to stay firmer past 1.3350, the bulls will retake control.
On the contrary, a convergence of the 10-DMA and previous resistance line from June 05, close to the 1.3200 round figure, puts a floor under the USD/CAD price for intraday.
Following that, the yearly low marked on Tuesday around 1.3115 and the 1.3000 round figure will be in the spotlight.
While the technical details are mostly favoring the Loonie pair buyers, it all depends upon today’s US Core Personal Consumption Expenditure (PCE) Price Index for May, also known as the Federal Reserve’s (Fed) favorite inflation gauge.
Also read: US PCE Preview: Three ways this inflation gauge impacts your income and summer plans
USD/CAD: Daily chart
Trend: Limited upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
