On Thursday, the USD/CAD currency pair continued to trade around the 1.3500 level after the latest round of data. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair has now advanced to trade slightly below the 100-hour moving average line. However, the currency pair still seems to have room left to run either side of the 14-hour RSI for both the bulls and the bears to pounce.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair trades during a relatively busy period in both markets. On Thursday, the US ISM Services PMI for August outperformed the expectation of 51.1 with a reading of 51.5. The S&P Global Composite PMI for the month also outshone the forecast of 54.1 with a reading of 54.6.

Elsewhere, the initial jobless claims for the week ending August 30 came in lower than expected with 227k versus a forecasted claim count of 230k. On the other hand, the ADP Employment Change for last month missed the expectation of 145k with a change of 99k.

Nonfarm productivity for Q2 outshone the estimated change of 2.3% with a change of 2.5%, while the unit labour costs for the quarter fell short of the forecasted change of 0.9% with a change of 0.4%.

In Canada, the Bank of Canada voted to lower the base interest rate from 4.5% to 4.25% in line with expectations. Traders will be looking forward to the Canadian employment change and unemployment rate on Friday, alongside the US nonfarm payrolls.

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 supports an indecisive market sentiment, with plenty of room to run on both sides of the indicator.

Therefore, the bulls will look to pounce on potential upward movements at about 1.3525 or higher at 1.3538. On the other hand, the bears will look to pounce on profits at about 1.3497 or lower at 1.3484.

USD/CAD Technical Analysis (the Daily Chart)

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

Therefore, the bulls will look to extend the current rebound towards 1.3563 or higher to 1.3615. On the other hand, the bears will look to ride the current decline towards 1.3466 or lower to 1.3417.