On Thursday, the USD/CAD currency pair bounced back from the session lows of about 1.3967 to trade at about 1.4000. The currency pair trades within a descending channel formation on the 60-minute chart.

The pair continues to trade a few levels below the 100-hour moving average line despite the rebound. Thursday’s rebound prevented the currency pair from falling into 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 for both markets. On Wednesday, the Bank of Canada raised the base interest rate by 25 basis points to 2.5%, up from 2.25%, as expected. Traders will be waiting for the Canadian gross domestic product data for August on Friday. 

In the US, the Federal Reserve kept the base interest rate steady at 3.75%-4%, as expected. Earlier in the week, US durable goods orders for September outperformed the expected change of 0.6%, with a change of 1.8%. On the other hand, the durable goods orders ex-transportation for the period fell short of 0.6%, with a change of 0.5%, while the August housing price index outshone the estimate of 0.1%, with a change of 0.3% (MoM).

Looking forward, traders will be waiting for the preliminary US gross domestic product data for Q3, alongside the preliminary personal consumption expenditures prices for the quarter, and last week’s claims data on Thursday. The US personal consumption price index, personal income, and personal spending data will also be out on Thursday.

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

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

Therefore, the bulls will look to stretch the current rebound towards 1.4031 or higher, up to 1.4064. On the other hand, the bears will look to pounce on profits at about 1.3967 or lower, down to 1.3934.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a sharply descending channel formation. However, the 14-day RSI still has some room left to run before reaching oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 1.3849 or lower, down to 1.3691. On the other hand, the bulls will look to pounce on rebounds at about 1.4145 or higher, up to 1.4291.