USD/CAD Price Analysis: Consolidates below 1.3600 ahead of US core PCE, Canadian Q4 GDP

USD/CAD trades sideways around 1.3570 ahead of the US and Canada economic data.
The BoC may shift to rate cuts early if the Canadian Q4 GDP turns out weaker than expectations.
The Loonie asset hovers around the horizontal resistance of the Ascending Triangle formation.

Sagar Dua FXStreet

The USD/CAD pair is stuck in a tight range around 1.3570 in the European session on Thursday. The Loonie asset awaits the United States core Personal Consumption Expenditure Price Index (PCE) and the Canadian Q4 Gross Domestic Product (GDP) data for fresh guidance, both will be published at 13:30 GMT.

The US Dollar Index turns subdued ahead of the crucial US inflation data. The monthly core PCE Price Index data is anticipated to have grown by 0.4% in January against 0.2% increase in December. The annual underlying inflation data is forecasted to have grown at a slower pace of 2.8% vs. 2.9% growth in December.

On the Canadian Dollar front, the monthly GDP data for December is expected to have grown at a steady pace of 0.2%. The Bank of Canada (BoJ) projected earlier that the growth rate in the last quarter of 2023 will be flat. Weak GDP growth would deepen hopes of early rate cuts by the Bank of Canada (BoC).

USD/CAD aims to deliver a breakout of the Ascending Triangle chart pattern formed on a daily timeframe. The asset hovers around the horizontal resistance of the aforementioned pattern plotted from December 13 high at 1.3608, while the upward-sloping border is placed from December 29 low at 1.3178.

The near-term demand is upbeat as the pair is holding above the 50-day Exponential Moving Average (EMA), which trades around 1.3487.

The 14-period Relative Strength Index (RSI) climbs above 60.00, indicating that momentum leans toward the upside.

Fresh upside would appear if the asset breaks above December 13 high at 1.3608, which will drive the asset towards November 15 low at 1.3655, followed by the round-level resistance of 1.3700.

On the flip side, a downside move below February 22 low at 1.3441 would expose the asset to February 9 low at 1.3413. A breakdown below the latter would extend downside towards January 15 low at 1.3382.

USD/CAD daily chart

USD/CAD

Overview
Today last price	1.358
Today Daily Change	0.0007
Today Daily Change %	0.05
Today daily open	1.3573

Trends
Daily SMA20	1.3494
Daily SMA50	1.3424
Daily SMA100	1.3541
Daily SMA200	1.3478

Levels
Previous Daily High	1.3606
Previous Daily Low	1.3525
Previous Weekly High	1.3536
Previous Weekly Low	1.3441
Previous Monthly High	1.3542
Previous Monthly Low	1.3229
Daily Fibonacci 38.2%	1.3575
Daily Fibonacci 61.8%	1.3556
Daily Pivot Point S1	1.353
Daily Pivot Point S2	1.3486
Daily Pivot Point S3	1.3448
Daily Pivot Point R1	1.3612
Daily Pivot Point R2	1.365
Daily Pivot Point R3	1.3693

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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