The USD/CAD currency pair on Friday pulled back off session highs of about 1.3563 to trade at about 1.3540 after US spending data. The currency pair now appears to have completed a downward breakout from an ascending channel formation.
The pair continues to trade several levels below the 100-hour moving average line. Friday’s early pullback pushed the pair towards the central zone 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 the US market. On Friday, the core personal consumption expenditures price index for February missed the expected (MoM) change of 0.4% with a change of 0.3%. The (YoY) equivalent also came short of the forecasted change of 4.7% with a change of 4.6%.
The personal consumption expenditures price index for the period outshone the (MoM) estimate of 0.2% with a change of 0.3%, while the (YoY) equivalent fell short of 5.3% with a change of 5%. Elsewhere, personal income for February outshone the expectation of 0.2% with a change of 0.3%, while personal spending missed 0.3% with a change of 0.2%. In Canada, the gross domestic product for January beat the expected (MoM) change of 0.3% with a change of 0.5%.
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair appears to have recently completed a downward breakout from an ascending channel formation. This indicates a significant change in the market sentiment from bullish to bearish.
Therefore, the bears will be looking to stretch the current pullback towards 1.3525 or lower to 1.3507. On the other hand, the bulls will look to pounce on rebounds at about 1.3562 or higher at 1.3581.
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 strong long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to stretch the current declines toward 1.3455 or lower to 1.3356. On the other hand, the bulls will be targeting long-term profits at about 1.3639 or higher at 1.3724.