The USD/CAD currency pair on Friday pulled back off the session highs of about 1.3632 to trade at about 1.3611. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The pair now seems to have found strong support at the 100-hour moving average line. This prevented the currency pair from descending into the oversold levels 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 both markets. On Thursday, the US initial jobless claims for last week outperformed the expected claim count of about 195k with a lower tally of 190k.

Continuing claims for the preceding period also beat the forecast of 1.665 million with a tally of 1.655 million, while unit labour costs for Q4 outshone the expected change of 1.6% with a change of 3.2%. Earlier in the week, the ISM Manufacturing PMI for February missed the expected reading of 48 with a reading of 47.7. The S&P Global Manufacturing PMI for the period also missed 47.8 with a reading of 47.3.

In Canada, the ISM Manufacturing PMI for February outshone the forecasted reading of 50.1 with a reading of 52.4. Earlier in the week, the Canadian Gross Domestic Product for December missed the expected (MoM) change of 0% with a change of -0.1%. On the other hand, the Q4 GDP beat the (QoQ) estimate of -0.2% with a change of 0%. On the other hand, annualised GDP for the period missed the forecast of 1.5% with a change of 0%.

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

Technically, the USD/CAD currency pair appears to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current run of gains toward 1.3631 or higher to 1.3656. On the other hand, the bears will look to pounce on profits at about 1.3588 or lower at 1.3563.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current streak of gains toward 1.3701 or higher to 1.3811. On the other hand, the bears will look to pounce on profits at about 1.3514 or lower at 1.3396.