USD/CAD is currently testing the 50 SMA as support after a recent retreat. The pair has been on a bullish trend this month, with moving averages acting as a significant support level. The positive economic data from the US, including today's GDP report for Q4, has been keeping the US dollar in demand. However, the USD has been losing ground due to slowing inflation.

In Canada, the economy has been showing mixed signals. Inflation has been returning in recent months, but today's earnings figures for November showed a decent jump. The Bank of Canada (BOC) recently had its policy meeting and indicated a shift toward a more dovish stance. They are no longer considering raising interest rates as they believe rates have reached their peak. This dovish tilt from the BOC has further supported the bullish movement in the USD/CAD pair.

Despite the higher earnings numbers, the USD/CAD pair remains supported by moving averages and has not fallen below 1.35. As long as the price stays above the 50 SMA, the bullish bias for this pair will continue. A break above 1.3540 could lead to a rally towards the 61.8% retracement level at 1.3622. Overall, the larger uptrend from the 2021 low is still expected to resume through the 2022 high of 1.3976.