The USD/CAD currency pair on Friday bounced off the trendline support at about 1.3586 to trim the day’s session losses. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The pair has now plunged to trade below the 100-hour moving average line. However, Friday’s late rebound prevented the currency pair from falling into the oversold 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 durable goods orders for November missed the expected change of -0.6% with a change of -2.1%. On the other hand, durable goods orders ex-defence failed to match the estimate of 0.1% with a change of -2.6%, while durable goods orders ex-transportation beat 0% with a change of 0.2%. Elsewhere, nondefense capital goods orders ex-aircraft outshone the forecasted change of 0% with a change of 0.2%.

In Canada, the gross domestic product for October matched the expected (MoM) change of 0.1%. Earlier in the week, the BoC’s core consumer price index for November missed the expected (YoY) change of 6.4% with a change of 5.8%. The (MoM) equivalent was in line with the forecast of 0%, while general CPI  beat both the (MoM) and (YoY) forecasts of 0% and 6.7% with a change of 0.1% and 6.8%, respectively. Retail sales for October also beat the (MoM) estimate of -0.3% with a change of 1.4%.

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

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

Therefore, the bears will be targeting short-term profits at about 1.3586 or lower at 1.3562. On the other hand, the bulls will be looking to pounce on profits at about 1.3626 or higher at 1.3652.

USD/CAD Technical Analysis (the Daily Chart)

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

Therefore, the bulls will be looking to stretch the current streak of gains toward 1.3700 or higher to 1.3812. On the other hand, the bears will be targeting long-term profits at about 1.3511 or lower at 1.3391.