The USD/CAD currency pair on Thursday bounced off the trendline support at about 1.3475 to trade at about 1.3502. The currency pair appears to have completed an upward breakout from a descending channel formation.
As a result, the currency pair has ascended to trade above the 100-hour moving average line. However, the pair still has more room to run before reaching the overbought 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 the US market. On Thursday, the initial jobless claims for the week ending September 22 beat the expected claim count of 215k with a lower tally of 204k. The continuing claims for the preceding period also outshone the forecast of 1.675 million with a tally of 1.67 million. Elsewhere, the annualised US gross domestic product for Q2 matched the expected change of 2.1%. The gross domestic product price index for the period missed the estimated change of 2% with a change of 1.7%.
The personal consumption expenditures prices for Q2 came in line with the estimated (QoQ) change of 2.5%, while the core personal consumption expenditures rate of the period matched the forecast of 3.7% (QoQ). Elsewhere, pending home sales for August missed the expected (MoM) change of -0.8% with a change of -7.1%. Earlier in the week, durable goods orders beat the expectation of -0.5% with a change of 0.2%. Traders will be looking forward to Canada’s GDP data on Friday.
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair appears to have recently completed an upward breakout from a descending channel formation. The hourly MACD also seems to be about to complete an upward crossover, indicating a bullish sentiment.
Therefore, the bulls will be looking to extend the current rebound towards 1.3521 or higher to 1.3542. On the other hand, the bears will look to pounce on pullbacks at about 1.3483 or lower at 1.3464.
USD/CAD Technical Analysis (the Daily Chart)
In the daily chart, the USD/CAD currency pair appears to be trading within an ascending channel formation. However, the daily MACD seems to be nearing an upward crossover, indicating a potential change in the market sentiment from bearish to bullish.
Therefore, the bulls will be targeting long-term profits at about 1.3594 or higher at 1.3688. On the other hand, the bears will look to pounce on profits at about 1.3419 or lower at 1.3325.