USD/CAD technical analysis: Set-up turning in favour of bearish traders, US GDP eyed for confirmation

   •  Having failed to capitalize on the post-BoC up-move for fresh multi-month tops, the USD/CAD pair met with some fresh on Thursday and eroded a major part of the overnight positive move.

   •  The pair has now slipped back below the key 1.3500 psychological mark, albeit has managed to hold above a short-term ascending trend-line - extending from one-month lows set last Wednesday.

Given the pair has repeatedly failed to sustain/capitalize on its strength beyond the mentioned handle, a break below the said trend-line support now seems to accelerate the slide towards 1.3430-25 horizontal zone.

A follow-through weakness could further drag the pair towards the 1.3400 round figure mark en-route the 1.3380-75 support - marked by the lower end of a broader trading range held over the past one month or so.

Meanwhile, technical indicators on the 1-hourly chart have already drifted into the bearish territory and been losing positive momentum on 4-hourly/daily charts, though managed to hold in the positive territory.

The set-up, although gradually seems to be shifting in favour of bearish traders, still warrant some caution before placing any aggressive bets ahead of Thursday’s important release of the revised US GDP print.

USD/CAD 1-hourly chart