Resistance in and around $1.38, eyes on PCE tomorrow

Taking a look at the USD/CAD forex pair ahead of the PCE data tomorrow. The dollar has gained some real momentum over the past couple of months with central banks around the world easing on interest rates, meanwhile, the Federal Reserve has been more cautious. This can also be seen as hawkish, in turn, strengthening the US currency. Currently, the dollar is trading at around $1.3687 against the Canadian dollar. We can see that the pair has found some resistance between $1.3791 and $1.3846, with a double rejection as of now. A break above this area would be a bullish indication and may see the pair rally higher towards the major resistance at $1.3977. Towards the downside looking at support levels for the near term, this week’s low of $1.3626 would be the first level of focus. A move below it could see traders look towards $1.3590 as a break below here could instigate a fresh round of sell-offs. The momentum of the technical indicators is a little concerning, the MACD has edged tightly towards its signal line and the RSI has dipped recently. Now back to neutral as it reads 54.