The USD/CAD currency pair on Wednesday bounced off the trendline support at about 1.3435 to trade at about 1.3454 following the latest round of data. The currency pair appears to be trading within a sharply descending channel formation in the 60-min chart.

The currency pair has now fallen to trade several levels below the 100-hour moving average line. Wednesday’s late rebound prevented the currency pair from descending into the oversold levels of the 14-hour RSI.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair is trading at the back of a relatively busy period in both markets. On Wednesday, the US building permits for April missed the expedited tally of 1.437 million with a tally of 1.416 million, while Housing Starts beat 1.4 million with 1.401 million. Earlier in the week, US retail sales for April missed the expected (MoM) change of 0.7% with a change of 0.4%. The retail sales control group beat the forecast of 0% with a change of 0.7%, while the retail sales ex-autos came in line with the estimated change of 0.4% (MoM). 

In Canada, the consumer price index for April beat both the (MoM) and (YoY) expectations of 0.4% and 4.1%, respectively with a change of 0.7% and 4.4%.  The Bank of Canada’s core consumer price index missed the estimated (MoM) change of 0.7% with a change of 0.5%, while the (YoY) equivalent beat the estimated change of 3.9% with a change of 4.1%. Manufacturing sales for March were in line with the estimate of 0.7% (MoM).

USD/CAD Technical Analysis (the 60-min Chart)

Technically, the USD/CAD currency pair appears to be trading within a sharply descending channel formation in the 60-min chart. This indicates a strong long-term bullish bias in the market sentiment.

Therefore, the bears will be looking to extend the current run of declines toward 1.3430 or lower at 1.3408. On the other hand, the bulls will look to pounce on rebounds at about 1.3477 or higher at 1.3499.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair seems to be trading within a gently descending channel formation. This indicates a slight long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about 1.3365 or lower at 1.3267. On the other hand, the bulls will look to pounce on profits at about 1.3540 or higher at 1.3632.