The USD/CAD currency pair on Friday pulled back from the trendline resistance at 1.3051 to trade at about 1.3026. The currency pair continues to trade within an ascending channel formation in the daily chart.

The currency pair still remains several levels above the 100-day moving average line despite the pullback. However, the pullback prevented the pair from ascending into the overbought conditions of the 14-day 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 240k with a tally of 222k. On the other hand, the continuing claims for the preceding week missed the expected tally of 1.435 million with a claim count of 1.473 million. Earlier in the week, the ISM Services PMI for August outperformed the expectation of 55.1 with 56.9.

In Canada, the unemployment rate for August missed the expected rate of 5% with a rate of 5.4%. The net change in employment also came short of the forecasted change of 15k with -39.7k, while the participation rate came in line with the average estimate of 64.8. Earlier in the week, the bank of Canada raised the base interest rate by 75 basis points to 3.25% up from 2.5% in line with expectations.

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

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

Therefore, the bears will be looking to extend the current streak of declines toward 1.2998 or lower to 1.2971. On the other hand, the bulls will be targeting potential rebound profits at about 1.3051 or higher at 1.3075.

USD/CAD Technical Analysis (the Daily Chart)

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

Therefore, the bulls will be targeting long-term profits at about 1.3117 or higher at 1.3207. On the other hand, the bears will look to pounce on potential pullbacks at about 1.2920 or lower at 1.2835.