Key Highlights
- USD/CAD is gaining pace above the 1.3550 resistance.
- It broke a major bearish trend line with resistance near 1.3505 on the 4-hour chart.
- EUR/USD and GBP/USD are signaling more losses.
- The US Gross Domestic Product could grow 1.1% in Q1 2023 (Preliminary).
USD/CAD Technical Analysis
The US Dollar started a steady increase above the 1.3450 pivot level against the Canadian Dollar. USD/CAD cleared many hurdles near 1.3500 to move into a positive zone.
Looking at the 4-hour chart, the pair settled above the 1.3500 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
There was a move above a major bearish trend line with resistance near 1.3505 on the same chart. The pair even climbed above the 76.4% Fib retracement level of the downward move from the 1.3667 swing high to the 1.3315 low.
Immediate resistance is near the 1.3620 level. The next major resistance is near 1.3650, above which the pair could rise toward the 1.3700 level.
Any more gains might send USD/CAD toward the 1.3750 level. On the downside, the pair might find support near 1.3535. The next major support is near the 1.3500 level and the 100 simple moving average (red, 4 hours).
If there is a downside break below the 1.3500 level, the pair could decline toward the 1.3440 support level. The next major support sits near the 1.3400 level.
Looking at EUR/USD, the pair is showing bearish signs and there is a risk of a move toward the 1.0680 level in the coming sessions.
Economic Releases
- US Gross Domestic Product for Q1 2023 (Preliminary) – Forecast 1.1% versus previous 1.1%.
- US Initial Jobless Claims – Forecast 243K, versus 244K previous.
