On Thursday, the USD/CAD currency pair bounced back from the session lows of about 1.3756 to trade at about 1.3788. The currency pair trades within a descending channel formation on the 60-minute chart.

The pair continues to trade a few levels below the 100-hour moving average line, despite the rebound. As a result, the currency pair still has room left 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 trades during a relatively busy period in both markets. In Canada, the consumer price index for July matched the forecasted (MoM) change of 0.5%. The (YoY) equivalent outshone the estimate of 2.9%, with a change of 3.0%. Traders will be looking forward to the Canadian retail sales data for June on Friday.

In the US, the initial jobless claims for last week fell to 206k, down from the previous week’s equivalent of 212k, beating the forecasted claim count of 210k. On the other hand, the Philadelphia Fed Manufacturing Survey for August exceeded the expectation of 25, with a reading of 47.4, up from the previous month’s equivalent of 41.4.

Earlier in the week, US building permits for July rose to 1.443 million, up from the previous month’s equivalent of 1.374 million, beating the forecast of 1.37 million. On the other hand, housing starts for the month fell to 1.239 million, down from 1.415 million, missing the forecasted reading of 1.35 million. 

Industrial production for July also missed the expected (MoM) change of 0.3%, with a change of 0.2%, while the pending home sales for the month missed 0.3%, with a change of -2.3% (MoM).

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

Technically, the USD/CAD currency pair trades within a descending channel formation on the 60-minute chart. However, the 14-hour RSI has recently bounced back to recover from oversold conditions. 

Therefore, the bulls will look to stretch the current rebound towards 1.3821 or higher to 1.3855. On the other hand, the bears will look to pounce on profits at about 1.3756 or lower at 1.3721.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair also trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias after dropping into oversold conditions.

Therefore, the bears will look to ride the current run of declines toward 1.3641 or lower to 1.3483. On the other hand, the bulls will look to pounce on rebounds at about 1.3954 or higher at 1.4108.