The USD/CAD pair drops to 1.3740 in Wednesday’s European session after failing to recapture the round-level resistance of 1.3800 on Tuesday. The Loonie asset corrects as firm recovery of almost 1.40$ in the US Dollar Index (DXY) appears to be stalling due to uncertainty ahead of the United States (US) Consumer Price Index (CPI) data for May and the Federal Reserve’s (Fed) interest rate decision, which are scheduled in the North American session.US annual core CPI, which excludes volatile food and energy prices, is estimated to have eased slightly to 3.5% from April’s release of 3.6%, with headline figures growing steadily by 3.4%. The inflation data turning out to be stubborn would weaken market expectations for the Fed to begin reducing interest rates from the September meeting, while soft number would boost them.Meanwhile, investors will majorly focus on the Fed’s dot plot as the central bank is expected to remain status quo for the seventh straight time.The Canadian Dollar remains broadly on the backfoot as investors expect that the Bank of Canada (BoC) could deliver subsequent rate cuts to boost labor demand. Canada’s inflation has already declined into BoC’s preferred core CPI range of 1%-3%.USD/CAD strengthens after a breakout of the Descending Triangle chart pattern formed on a daily timeframe. Upward-sloping 20- and 50-day Exponential Moving Averages (EMAs) near 1.3700 and 1.3660, respectively, suggest that the overall trend is bullish.The 14-period Relative Strength Index (RSI) hovers near 60.00. A sustainable move above the same will push momentum towards the upside.Fresh buying opportunity would emerge if the asset breaks above April 17 high at 1.3838. This would drive the asset towards 1 November 2023 high at 1.3900, followed by the psychological resistance of 1.4000.In an alternate scenario, a breakdown below June 7 low at 1.3663 will expose the asset to May 3 low around 1.3600 and April 9 low around 1.3547. USD/CAD daily chart  USD/CAD

OVERVIEW Today last price 1.3749 Today Daily Change -0.0009 Today Daily Change % -0.07 Today daily open 1.3758

 

TRENDS Daily SMA20 1.3673 Daily SMA50 1.3681 Daily SMA100 1.3596 Daily SMA200 1.358

 

LEVELS Previous Daily High 1.3792 Previous Daily Low 1.3748 Previous Weekly High 1.3768 Previous Weekly Low 1.3603 Previous Monthly High 1.3783 Previous Monthly Low 1.359 Daily Fibonacci 38.2% 1.3765 Daily Fibonacci 61.8% 1.3775 Daily Pivot Point S1 1.3741 Daily Pivot Point S2 1.3723 Daily Pivot Point S3 1.3697 Daily Pivot Point R1 1.3784 Daily Pivot Point R2 1.381 Daily Pivot Point R3 1.3828

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