The USD/CAD currency pair on Thursday bounced off the trendline support at about 1.3540 to trade at about 1.3576. The currency pair continues to trade within a descending channel formation in the 60-minute chart.

The currency pair has now advanced to trade a few levels above the 100-hour moving average line. As a result, the pair seems to have avoided falling 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 Thursday, the US initial jobless claims for the week ending February 23 missed the expected claim count of 210k with a tally of 215k. The continuing claims for the week ending February 16 also missed the forecast of 1.874 million with a tally of 1.905 million.

The pending home sales for January missed the expected (MoM) change of 1% with a change of -4.9%. The Chicago purchasing managers’ index for February also fell short of 48 with 44, down from 46 in the previous month.

In Canada, the preliminary annualised gross domestic product for Q4 outperformed the expected change of 0.8% with a change of 1%, compared to a change of -0.5% posted in the previous quarter. The (QoQ) equivalent also improved to 0.2% up from -0.1%. On the other hand, the gross domestic product for December missed the expected (MoM) change of 0.2% with a change of 0%, down from 0.2% in the preceding period.

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

Technically, the USD/CAD currency pair appears to be trading within an ascending channel formation in the 60-minute chart. The 14-hour RSI also seems to support a short-term bullish bias after bouncing back to avoid falling into oversold conditions.

Therefore, the bulls will be targeting extended rebounds at about 1.3599 or higher at 1.3622. On the other hand, the bears will look to pounce on pullbacks at about 1.2556 or lower at 1.3531. 

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. The 14-day RSI also seems to support a long-term bullish bias as it moves closer to overbought conditions.

Therefore, the bulls will be looking to ride the current rally towards 1.3718 or higher to 1.3872. On the other hand, the bears will be targeting long-term profits at about 1.3429 or lower at 1.3275.