On Thursday, the USD/CAD currency pair continued to trade below 1.4000 ahead of the U.S. jobless claims data. The currency pair trades within a gently descending channel formation in the 60-minute chart.
The pair also continues to trade slightly below the 100-hour moving average line. As a result, the currency pair has a lot of room on either side of the indicator for both the bulls and the bears to strike.
USD/CAD Fundamentals Overview
From a fundamental perspective, the USD/CAD currency pair trades during a relatively busy period in both markets. On Wednesday, the U.S. building permits for October missed the expectation of 1.43 million with a tally of -0.6 million, down from the previous month’s equivalent of 1.425 million. The housing starts for the month also fell to 1.311 million, down from 1.353 million, slightly falling short of the forecasted tally of 1.33 million.
In Canada, the consumer price index for October outshone the estimate of 0.3% (MoM) with a rate of 0.4%, up from -0.4% in September. The (YoY) equivalent also improved to 2%, up from 1.6%, beating the forecasted rate of 1.9%. On the other hand, the BoC’s core consumer price index for the month edged higher to 0.4% (MoM), up from 0%. The (YoY) equivalent improved slightly to 1.7%, up from 1.6%.
Traders will be looking forward to the U.S. initial jobless claims data for last week on Thursday alongside the November Philadelphia Fed Manufacturing Survey and the existing home sales data for October, ahead of Canada’s September retail sales data on Friday.
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI seems to have more room on either side of the indicator for the bulls and bears to pounce.
Therefore, the bulls will be targeting potential upward profits at about 1.4031 or higher at 1.4095. On the other hand, the bears will look to pounce on downward movements at about 1.3906 or lower at 1.3844.
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into the overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about 1.3704 or lower at 1.3439. On the other hand, the bulls will look to ride the current rally towards 1.4224 or higher to 1.4498.