On Thursday, the USD/CAD currency pair bounced back from the session lows of about 1.4225 to trade at about 1.4256. The currency pair trades within an ascending channel formation on the 60-minute chart. 

The pair continues to trade several levels above the 100-hour moving average line after the rebound. However, the currency pair has recently pulled back to recover from 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. On Thursday, the US initial jobless claims for last week increased significantly to 200k, up from the previous week’s equivalent of 191k, and above the forecast claim count of 195k. 

The US monthly budget statement for October also fell short, at $-298.6 billion, with $-404.1 billion, down from the previous month’s equivalent of $-27 billion. The US existing home sales change for October fell by 5.5%, compared to an increase of 1% in September. 

Earlier in the week, the US consumer price index for October fell to 0.4% (MoM), down from 0.6% in September, but ahead of the forecast rate of 0.3%. On the other hand, the consumer price index ex-food and energy for the period remained steady with a (MoM) change of 0.3%, ahead of the forecast rate of 0.2%.

Looking forward, traders will be waiting for the US producer price index data for October 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. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 1.4225 to lower, down to 1.4186. On the other hand, the bulls will look to pounce on profits at about 1.4291 or higher, up to 1.4331. 

USD/CAD Technical Analysis (the Daily Chart)

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

Therefore, the bulls will look to stretch the current rebound towards 1.4510 or higher, up to 1.4760. On the other hand, the bears will look to pounce on pullbacks at about 1.4011 or lower, down to 1.3751.