FundamentalOverviewThe USD continues to besupported against most major currencies, especially the commodity currencies,as the markets remain in a risk-off mood following some bad US data releases.In fact, since last Friday, we got weak US Flash Services PMI, UMich final Consumer Sentiment and this a weak US Consumer Confidence report on Tuesday. The problem is that we’vealso got inflation expectations jumping to new highs in both the UMich and theConference Board report. The market might be fearing that in case we get aslowdown, the Fed might not be fast enough in cutting rates amid inflationremaining above target and uncomfortably high long-term inflation expectations.This is something to keepin mind in light of the next NFP and CPI reports coming out before the MarchFOMC decision where we will also get the updated SEP and Dot Plot. Today, weget the US Jobless Claims figures and if we get a new high in the data, then wecan expect another wave of risk-off flows.On the CAD side, theeconomic data out of Canada has been showing gradual improvement and thecentral bank is now past the peak in dovishness which should further supportthe CAD. The risk-off sentiment though and the renewed threat of tariffs isn’thelping the Loonie. USDCADTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDCAD broke above the key resistance around the 1.4280 level andextended the rally as the buyers piled in with more conviction to target the 1.45handle. The sellers will want to see the price falling back below the 1.4280level to regain conviction and position for a drop into the 1.40 handle next. USDCAD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that the rally stalled around the most recent swing high at 1.4366 as thesellers stepped in with a defined risk above the level to position for apullback into the 1.4280 level targeting a break below it. The buyers, on theother hand, will want to see the price breaking above the 1.4366 level toincrease the bullish bets into the 1.45 handle next.USDCAD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have a minor upward trendline defining the bullish momentum. Thebuyers will likely continue to step in around the trendline to keep pushinginto new highs, while the sellers will likely pile in on the break to increasethe bearish bets into the 1.4280 level. The red lines define the average daily range for today. Upcoming CatalystsToday we get the latest US Jobless Claimsfigures, while tomorrow we conclude the week with the US PCE data. This article was written by Giuseppe Dellamotta at www.forexlive.com.