USD/CAD Bounces Back from Daily Low as Bulls Eye 1.3900

The USD/CAD exchange rate bounced back from its daily low of 1.3833 after receiving a boost from high US inflation data. The pair is now up about 0.26% and has reached new weekly highs, but the technical outlook remains bearish.

The Relative Strength Index (RSI) is below its neutral level of 50 but trending upward, which may indicate consolidation before a potential downside move. If the price breaks below 1.3844, it could expose support levels at 1.3800 and 1.3730.

On the other hand, if the bulls can push the price above 1.3900, they will be targeting the 100-day Simple Moving Average (SMA) at 1.3914, ahead of the psychological levels of 1.3950 and 1.4000.