USD/CAD Price Analysis: Likely come out of contraction after US Inflation data, BoC policy decision

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USD/CAD Price Analysis: Likely come out of contraction after US Inflation data, BoC policy decision
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The USD/CAD pair struggles for a direction as investors await the United States Consumer Price Index (CPI) data for March, which will be published on Wednesday.

USD/CAD consolidates below 1.3600 as the focus shifts to US Inflation and BoC monetary policy. The US inflation data could be made or a break for market expectations of Fed rate cuts in June. The BoC is expected to keep interest rates steady at 5%. The USD/CAD pair struggles for a direction as investors await the United States Consumer Price Index data for March, which will be published on Wednesday. The Loonie asset trades sideways below the round-level resistance of 1.

USD/CAD is slightly down from the horizontal resistance of the Ascending triangle formation on a daily timeframe, plotted from December 7 high at 1.3620. The upward-sloping border of the aforementioned pattern is placed from December 27 low at 1.3177. The chart pattern exhibits a sharp volatility contraction and a breakout can happen in any direction. The 200-day Exponential Moving Average near 1.3500 remains a crucial support for the US Dollar bulls.

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