On Thursday, the USD/CAD currency pair bounced from the session lows of about 1.3661 to trade at about 1.3693. The currency pair also completed an upward breakout from a descending channel formation in the 60-minute chart.

The pair also advanced to trade a few levels above the 100-hour moving average line. As a result, the currency pair is on the verge of entering the overbought 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 both markets. In Canada, the consumer price index for March missed the expected (MoM) change of 1.1%, with a change of 0.9%. The (YoY) equivalent also fell short of the forecasted rate of 2.5%, with 2.4%. Traders will be looking forward to the Canadian retail sales data for February on Friday.

In the US, the initial jobless claims for last week missed the expected claim count of 212k, with a slightly higher tally of 214k, up from the previous week’s equivalent of 208k. The preliminary S&P Global Manufacturing PMI for April outperformed the expectation of 52.5, with a reading of 54. The preliminary S&P Global Services PMI for the period also beat the forecasted reading of 50, with a reading of 51.3. 

Earlier in the week, retail sales for March exceeded the (MoM) forecast of 1.4%, with a change of 1.7%. The retail sales control group for the month also outshone the expectation of 0.2%, with a change of 0.7%, while the retail sales ex-autos beat 1.4%, with a change of 1.9% (MoM).

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

Technically, the USD/CAD currency pair completed an upward breakout from a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to pounce on extended rebounds at about 1.3726 or higher at 1.3758. On the other hand, the bears will look to pounce on pullbacks at about 1.3661 or lower at 1.3630.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair has recently completed a downward breakout from an ascending channel formation. The 14-day RSI also supports a bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3555 or lower to 1.3423. On the other hand, the bulls will look to pounce on rebounds at about 1.3827 or higher at 1.3953.