The USD/CAD currency pair on Friday bounced off the trendline support at 1.3679 to trade at about 1.3732 after the latest round of US data. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The pair has now advanced to trade above the 100-hour moving average line. As a result, the currency pair seems to be moving back towards the overbought conditions of the 14-hour RSI.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair is trading at the back of a relatively busy period in both markets. On Friday, the US non-farm payrolls for September outperformed the expectation of 250k jobs with a tally of 263k. On the other hand, the unemployment rate declined to the lowest level since July, falling to 3.5% down from 3.7% in August and ahead of the consensus estimate of 3.7%. However, the average hourly wage growth for the period failed to match the expected growth rate of 5.1% with a slightly lower rate of 5%.

In Canada, the net change in employment for September outshone the market forecast of 20k with a slightly higher figure of 21.1k. On the other hand, the unemployment rate for the month declined from 5.4% in August to 5.2% in September, outperforming the expectation of 5.4%. Earlier in the week, the seasonally adjusted Ivey Purchasing Managers Index for September missed the expectation of 60.9 with a reading of 59.5.

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

Technically, the USD/CAD currency pair seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current rally towards 1.3779 or higher to 1.3836. On the other hand, the bears will be targeting potential pullback profits at about 1.3679 or lower at 1.3611.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair seems to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting long-term profits at about 1.3974 or higher at 1.4240. On the other hand, the bears will look to pounce on profits at about 1.3478 or lower at 1.3185.