On Thursday, the USD/CAD currency pair bounced off the key support at about 1.3460 to trade at about 1.3475. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair continues to trade a few levels below the 100-hour moving average line. As a result, the currency pair still has room left on either side of the indicator for the bulls and bears to pounce.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair trades during a relatively busy period in the US market. On Thursday, the US initial jobless claims for the week ending September 20 came in lower than expected with a claim count of 218k versus a forecast of 225k, down from the preceding week’s equivalent of 222k. Durable goods orders for August beat the expected change of -2.6% with a change of 0%, down from 9.9% in the preceding period. 

The durable goods orders ex-transportation also outshone the forecast of 0.1% with a change of 0.5%, up from -0.1%, while the nondefence capital goods orders ex-aircraft outshone the estimate of 0% with a change of 0.2%, up from -0.2%.

US annualised gross domestic product for Q2 was steady with a change of 3% in line with expectations, while the gross domestic price index for the quarter delivered a change of 2.5%, the same as the previous period. Personal consumption expenditure prices for Q2 matched the forecast of 2.5% (QoQ). Earlier in the week, the US housing price index for July missed the expectation of 0.2% with a change of 0.1% (MoM).

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

Technically, the USD/CAD currency pair trades within a sideways channel formation in the 60-minute chart. The 14-hour RSI also appears to have room for both the bulls and the bears to be optimistic.

Therefore, the bulls will target upward movements at about 1.3491 or higher at 1.3510. On the other hand, the bears will look to pounce on downward movements at about 1.3456 or lower at 1.3436.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a descending channel formation. The 14-day RSI has also plummeted to move closer to oversold conditions.

Therefore, the bears will be targeting extended declines at about 1.3382 or lower at 1.3287. On the other hand, the bulls will look to pounce on rebounds at about 1.3557 or higher at 1.3644.