On Thursday, the USD/CAD pair bounced back from session lows around 1.4097 to trade at about 1.4133. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair continued to trade a few levels above the 100-hour moving average line on the Thursday session. Thursday’s rebound pushed the pair into overbought territory on the 14-hour RSI.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair trades during a relatively busy period in both markets. In Canada, retail sales for July outperformed the forecast (MoM) change of -0.8%, with a change of -0.7%. On the other hand, retail sales ex-autos fell short of the forecast (MoM) change of -0.5%, with a change of -0.7%. 

In the US, the initial jobless claims edged slightly lower to 197k, down from the previous week’s equivalent of 198k, beating the forecast claim count of 201k. On Wednesday, the preliminary S&P Global Composite PMI for September improved to 58.4, up from the previous month’s equivalent of 56.

The preliminary S&P Global Manufacturing PMI for the month outperformed the expected reading of 53.5, with a reading of 57, up from the preceding month’s equivalent of 53.9. On the other hand, the preliminary S&P Global Services PMI for the period rose to 58.7, up from 56.5 in August, beating the forecast reading of 56.

Looking forward, traders will be waiting for the US durable goods orders for August, the Michigan Consumer Sentiment Index for September, and the UoM inflation expectations for the month on Friday.

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

Technically, the USD/CAD currency pair trades within an ascending channel formation on the 60-minute chart. The 14-hour RSI also supports a bullish bias after rallying into overbought conditions.

Therefore, the bulls will look to stretch the current run of gains toward 1.4166 or higher, to 1.4206. On the other hand, the bears will look to pounce on pullbacks at about 1.4097 or lower, at 1.4056.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a sharply ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to stretch the current rebound towards 1.4306 or higher, to 1.4486. On the other hand, the bears will look to pounce on pullbacks at about 1.3947 or lower, to 1.3752.