The US Dollar (USD) rallied against the Canadian Dollar (USD) on Thursday, increasing the price of USD/CAD to more than 1.3300 ahead of the US consumer price index data. The technical bias remains bullish because of a higher low in the recent downside move.

Technical Analysis

As of this writing, the pair is being traded around 1.3311. A hurdle can be seen near 1.3387, the short term horizontal resistance as well as 61.8% fib level as demonstrated in the given below daily chart. A break and daily closing above the 1.3387 resistance shall trigger fresh buying pressure, opening door for a move towards the 1.3400 hurdle, the psychological level.

On the downside, a support may be seen near 1.3296, an immediate trendline support as demonstrated with pink color in the given above chat ahead of 1.3222, the short term horizontal support and then 1.3200, the psychological number. The technical bias shall remain bullish as long as the 1.3200 support zone is intact.

US Consumer Sentiment

U.S. consumer sentiment unexpectedly strengthened in early April as consumer optimism on current economic conditions climbed to its strongest level since November 2000, a private survey released on Thursday showed. The University of Michigan Surveys of Consumers said its preliminary April consumer sentiment index rose to 98.0, up from a final March reading of 96.9. Analysts polled by Reuters had forecast a reading of 96.5. “Consumer sentiment inched upward in early April mainly due to more favorable views of current economic conditions,” the survey’s chief economist Richard Curtin said in a statement. Consumers’ outlook on the economy improved following Republican Donald Trump’s presidential win in November. Some consumers have hoped for more jobs and higher income due to tax cuts, infrastructure spending and looser regulations that Trump pledged during his campaign.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.