On Thursday, the USD/CAD currency pair bounced from the session lows of about 1.3872 to trade at about 1.3921 after the latest data. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair has now advanced to trade slightly above the 100-hour moving average line after the rebound. As a result, the currency pair is moving closer to 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 the US market. In Canada, the S&P Global Manufacturing PMI for March fell slightly to 50, down from 51 in February. On the other hand, the gross domestic product price index for January came in better than expected, with a (MoM) change of 0.1% versus a forecast of 0%.

In the US, the ISM Manufacturing PMI for March exceeded the expectation of 52.5, with a reading of 52.7, up from 52.4. The ISM Manufacturing Prices Paid for the month also outshone the estimate of 73, with a reading of 78.3, up from 70.5 in February. 

Elsewhere, the ADP employment change for March outperformed the expectation of 40k, with a change of 62k, down from 66k in February. The retail sales for February also outshone the forecasted (MoM) change of 0.5%, with a change of 0.6%, while the retail sales ex-autos beat 0.3%, with a change of 0.5%.

Earlier in the week, the US housing price index for January matched the forecasted (MoM) change of 0.1%. On the other hand, the Chicago Purchasing Managers’ Index for March fell short of 55, with a reading of 52.8, down from 57.7 in February.

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

Technically, the USD/CAD currency pair trades within an ascending channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias after bouncing back to move closer to overbought conditions.

Therefore, the bulls will look to stretch the latest rebound towards 1.3968 or higher to 1.4016. On the other hand, the bears will look to pounce on pullbacks at about 1.3872 or lower at 1.3821.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to move closer to overbought conditions.

Therefore, the bulls will look to extend the latest rebound towards 1.4072 or higher to 1.4229. On the other hand, the bears will look to pounce on profits at about 1.3778 or lower at 1.3607.