USD/CAD Price Analysis: Bulls flex and eye prior daily resistance

• USD/CAD bulls move in for the easy money into month end.
• The support area was a foundation for a short squeeze ahead of a new month.

USD/CAD has come up for air as the following analysis will show. It's month's end so traders look to square up following a disappointment in US data to cap the stronger performance this week.  The Federal Reserve's preferred inflation gauge rose 0.3% MoM, in line with forecasts and below 0.4% in April while the annual core rate slowed to 4.6% and the headline PCE rate reached the lowest in nearly two years.

In contrast to this week's firmer data, profit-taking has ensued and bears have thrown in the towel in preparation for a new month in the ebbs and flows of the market testing prior lows of the week's opening balance.

CAD is therefore pressured as follows:

The daily chart hits the upper end of the 1.32 area and bull eye a significant correction towards key resistance.