On Thursday, the USD/CAD currency pair bounced back from the session lows of 1.3971 to trade at about 1.3990. The currency pair trades within an ascending channel formation on the 60-minute chart. 

The pair continues to trade several levels above the 100-hour moving average line after the rebound. However, the currency pair has recently pulled back to recover from 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 August missed the (MoM) forecast of 0%, with a change of -0.1%. The (YoY) equivalent was in line with the estimate of 3%. On the other hand, the BoC’s core consumer price index for the month fell short of the forecast (MoM) change of 0.2%, with a change of 0.1%. 

In the US, building permits for August missed the expectation of 1.41 million, with a tally of 1.394 million (MoM). Housing starts for the period also fell short of the forecast tally of 1.31 million, with 1.275 million (MoM). On the other hand, the US initial jobless claims for last week came in lower than expected, at 196k versus a forecast of 208k, down from the previous week’s equivalent of 206k.

Elsewhere, the Philadelphia Fed Manufacturing Survey for September fell to 37.8, down from the previous month’s equivalent of 47.4, beating the forecast reading of 30.5. On the other hand, pending home sales for August missed the expected (MoM) change of 2%, with a change of 0.3%. On Wednesday, the Federal Reserve raised the base interest rate by 25 basis points to 4%, up from 3.75% as expected.

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

Technically, the USD/CAD currency pair trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.3971 or lower, to 1.3943. On the other hand, the bulls will look to pounce on profits at about 1.4015 or higher, at 1.4040.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair has recently completed an upward breakout from a descending channel formation. However, the 14-day RSI still has some room left to run before reaching overbought conditions.

Therefore, the bulls will look to stretch the current rebound towards 1.4120 or higher, up to 1.4232. On the other hand, the bears will look to pounce on pullbacks at about 1.3876 or lower, down to 1.3755.