The USD/CAD currency pair on Wednesday bounced off the current 2-week lows of about 1.2988 to top 1.3000 ahead of the Thanksgiving holiday. The currency pair continues to trade within a slightly descending channel in the 60-min chart.

Wednesday’s late rebound prevented the pair from crossing to oversold levels of the 14-hour RSI. It remains a few levels below the 100-hour and the 200-hour SMA lines.

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 Wednesday, the US durable goods orders for October beat the expected change of 0.9% with a change of 1.3%. Nondefense capital goods orders ex-aircraft also beat the expectation of 0.5% with 0.7% while the preliminary annualized gross domestic product for Q3 missed the expected growth of 33.2% with 33.1%. 

The Michigan Consumer Sentiment Index for November missed the expectation of 77 with 76.9 while personal income for October fell 0.7% versus an expected change of 0.0% (MoM). New home sales for October outperformed the expectation of 0.97m with 0.999M (MoM) while personal spending also beat 0.4% with 0.5%. The initial jobless claims missed 730k with 778k while continuing claims of 6.071M were slightly higher than the expected claim count of 6.02M.

Earlier in the week, the preliminary US Markit Manufacturing and Services PMIs beat expectations while the Housing Price Index also outperformed.

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

Technically, the USD/CAD currency pair appears to be trading within a slightly descending channel in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

The bulls will be targeting short-term rebound profits at around the 23.60% fib level at 1.3032 or higher at 1.3067. On the other hand, the bears will be looking to pounce for profits at around 1.2964 or lower at the 0.00% fib level at 1.2926.

USD/CAD Technical Analysis (the Daily Chart)

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

The bulls will be targeting long-term profits at around 1.3136 or higher at 1.3309. On the other hand, the bears will look to extend long-term declines towards 1.2887 or lower at 1.2714.