The USD/CAD currency pair on Friday pulled back off the session highs of about 1.3400 to trade at about 1.3327. The currency pair appears to have completed a downward breakout from an ascending channel formation.

The pair momentarily fell below the 100-hour moving average line to 1.3286 before making a later rebound. As a result, the currency pair appears to be on the verge of entering the oversold levels 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 jobs data for December outperformed the expectation of 170k with a tally of 216k. The unemployment rate of the month also beat the forecasted rate of 3.8% with a rate of 3.7%, unchanged from November, while the average hourly wage growth was 0.4% compared to the forecasted (MoM) growth rate of 0.3%.

The (YoY) equivalent also beat 3.9% with a growth rate of 4.1%. On the other hand, the ISM services PMI for December missed the estimate of 52.6 with a reading of 50.6, while factory orders for November beat 2.1% with a change of 2.6% (MoM).

In Canada, the unemployment rate for December outperformed the expectation of 5.9% with a rate of 5.8%, unchanged from the previous month. However, the net change in employment for the month also missed the forecasted change of 13.5k jobs with a change of 0.1k. The average hourly wage growth for the month increased by 5.7% (YoY) compared to an increase of 5% in the previous month.

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

Technically, the USD/CAD currency pair appears to have recently pulled back to complete a downward breakout from an ascending channel. The 14-hour RSI also seems to support a short-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will be targeting extended pullbacks at about 1.3286 or lower at 1.3240. On the other hand, the bulls will be targeting short-term profits at about 1.3376 or higher at 1.3416.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will be targeting extended rebounds at about 1.3408 or higher at 1.3523. On the other hand, the bears will look to pounce on profits at about 1.3216 or lower at 1.3104.