USD/CAD Price Analysis: Clings to mild losses below 1.3200 within immediate triangle, US GDP eyed
- USD/CAD prints the first daily loss in three but lacks momentum of late.
- Two-week-old triangle restricts immediate Loonie moves at yearly low.
- Month-long horizontal support, 1.3250 resistance confluence act as additional trading filters.
- US Q2 GDP eyed after Fed failed to impress pair buyers.
USD/CAD remains on the back foot around the intraday low, despite lacking downside momentum heading into Thursday’s European session.
In doing so, the Loonie pair prints the first daily loss in three as markets await the first readings of the US Gross Domestic Product (GDP) Annualized for the second quarter (Q2), expected to ease to 1.8% from 2.0%. Also important to watch is the US Durable Goods Orders for June, likely easing to 1.0% from 1.8% prior (revised), as well as the monetary policy announcements from the European Central Bank (ECB).
That said, the Loonie pair remains within a fortnight-old triangle formation, currently between 1.3150 and 1.3225, following its corrective bounce off the lowest levels since September 2022 marked during mid-July.
It’s worth noting that the RSI (14) conditions suggest a continuation of a slower grind toward the south.
However, a one-month-old horizontal support zone near 1.3120-15 and the 1.3100 round figure may provide additional checks to the USD/CAD bears before directing them to the tops marked during May and June of 2022, close to 1.3080-75.
On the flip side, a convergence of the 200-Exponential Moving Average (EMA) and a descending resistance line from May 31, close to 1.3250 at the latest, appears a tough nut to crack for the USD/CAD bulls, apart from the stated triangle’s top line surrounding 1.3225.
In a case where the Loonie pair manages to remain firmer past 1.3225, the odds of witnessing a rally toward the monthly high of around 1.3390 can’t be ruled out.
USD/CAD: Four-hour chart
Trend: Limited downside expected