On Thursday, the USD/CAD currency pair bounced from the session lows of about 1.3712 to trade at about 1.3735 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair continues to trade several levels below the 100-hour moving average line, despite the latest rebound. Thursday’s rebound prevented the currency pair from entering the oversold 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 the US market. In Canada, manufacturing sales for February missed the (MoM) forecast of 3.8%, with a change of 3.6%. Wholesale sales for the period also fell short of 2.3%, with a change of 2% (MoM). Building permits for the month also failed to meet the forecasted (MoM) change of -0.5%, with a change of -8.4%. 

In the US, the initial jobless claims for last week fell to 207k, down from 218k in the preceding week, beating the forecasted claim count of 215k. On the other hand, the continuing claims for the preceding four-week period increased to 1.818 million, up from 1.787 million, missing the forecasted claim count of 1.81 million. Elsewhere, the Philadelphia Fed Manufacturing Survey for April rose to 26.7, up from 18.1, beating the forecasted reading of 10.

Earlier in the week, the US producer price index for March missed the expectation of 1.2%, with a change of 0.5% (MoM). The (YoY) equivalent also fell short of the forecasted change of 4.6%, with a change of 4%. On the other hand, the producer price index ex-food and energy for the period missed the expectations of 0.6% (MoM) and 4.2% (YoY), with changes of 0.1% and 3.8%, respectively.

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

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

Therefore, the bulls will look to extend the latest rebound towards 1.3756 or higher to 1.3782. On the other hand, the bears will look to pounce on profits at about 1.3712 or lower at 1.3686.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a sharply descending channel formation. The 14-day RSI also supports a long-term bearish bias as it moves towards oversold conditions.

Therefore, the bears will look to extend the latest pullback towards 1.3671 or lower to 1.3606. On the other hand, the bulls will look to pounce on rebounds at about 1.3806 or higher at 1.3973.