The USD/CAD currency pair on Wednesday bounced off the current weekly lows of about 1.2680 to trade at around 1.2798 after the latest round of US data. The currency pair continues to trade in a sideways channel formation in the 60-min chart.

The pair is now several levels above the 100-hour and the 200-hour SMA lines. It is now trading just below the overbought levels of the 14-hour RSI. This could trigger a short-term pullback.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair is trading at the back of a relatively busy period in the US market. On Wednesday, the US durable goods orders for December missed the expectation of 0.9% with a change of 0.2%. Nondefense capital goods orders ex-aircraft matched the expected change of 0.6% while durable goods orders ex-transportation outperformed 0.5% with 0.7%. The Federal Reserve also made the decision to keep the base interest rate unchanged at 0.25%.

On Tuesday, the S&P/Case-Shiller Home Price Indices for November beat the (YoY) expectation of 8.6% with a change of 9.1%. Housing Price Index for November registered a change of 1% (MoM) compared to a change of 1.5% in the previous period. On Monday, the Chicago Fed. National Activity Index for December improved to 0.52 up from 0.31 posted in the previous period.

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

Technically, the USD/CAD currency pair appears to be trading within highly volatile sideways channel formation in the 60-min chart. The pair has now surged to overbought levels of the 14-hour RSI. This could trigger a short-term pullback going into the tail-end of the week.

The bulls will be looking to extend the current short-term rebound towards 1.2833 or higher at 1.2869. On the other hand, the bears will look to pounce pullback profits at around 1.2762 or lower at 1.2723.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a sharply descending channel formation. This indicates a significant short-term bearish bias in the market sentiment. The pair has recently bounced back from oversold levels of the 14-day RSI.

The bulls will be targeting long-term profits at around 1.2943 or higher at 1.3102. On the other hand, the bears will look to pounce for long-term pullbacks at around 1.2678 or lower at 1.2532.