The USD/CAD currency pair on Friday pulled back off the new 9-month high of 1.3464 to trade at 1.3400.  The currency pair rallied during the week on the back a series of mixed US economic data. 

That rally came to an end on Friday. This pushed the pair back within the normal trading zone of the RSI indicator. This week’s gains also came despite a disappointing period in the US stock market caused by increased coronavirus fears.

USD/CAD Fundamentals Overview

The US Chicago Fed National Activity Index for January beat the expectations of -0.92 with -0.25. On Tuesday, the Housing Price Index beat the (MoM) expectation for December with 0.6% versus 0.3%. On the other hand, S&P Case-Shiller Home Price Indices for December outshone the (YoY) expectation of 2.8% with 2.9%. However, but the Richmond Fed Manufacturing for Feb missed 13 with a reading of -2.

On Thursday, the US Q4 GDP matched the annualized expectation of 2.1% but GDPPI missed 1.4% with 1.3%. On the other hand, Personal consumption expenditure missed 1.6% with 1.3% (QoQ) while core p[ersonal expenditure came short of 1.3% with 1.2%. The initial and continuing jobless claims also failed to meet expectations. 

In Canada, the Raw Materials Price Index and Industrial Product Price missed expectations.  The annualized GDP for Q4 matched the (QoQ) estimate of 0.3%.

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

Technically, the USD/CAD currency pair appears to be experiencing a short-term bullish bias in the market sentiment. However, today’s pullback could give the bears some hope going into next week.

Therefore, the bears will be targeting short-term profits at around 1.3369, 1.3342 or lower at 1.3248. On the other hand, the bulls will look to pounce on the next rebound by targeting profits at around 1.3430 or higher at 1.3464.

USD/CAd Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a gently sloping wedge. This indicates a slight long-term bearish bias in the market sentiment. The pair has also made a bullish breakout off the bearish wedge. This could trigger a reversal if the bulls keep the momentum going.

Therefore, the bulls will be targeting long-term profits at around 1.3657 or higher at 1.3796. On the other hand, the bears will look to pounce n pullback profits at around 1.3202, or lower at 1.3036.