The USD/CAD currency pair on Tuesday bounced off the trendline support at about 1/3380 to trade at about 1.3455 before pulling back to settle at 1.3400. The currency pair appears to be trading within descending channel formation in the 60-min chart.

The pair remains slightly above the 100-hour moving average line despite Tuesday’s pullback. As a result, it continues to trade centrally in 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 Tuesday, the US goods and services trade balance for December outperformed the expectation of $-68.5 billion with a balance of $-67.4 billion. On the other hand, consumer credit change for the period missed the forecasted balance of $24 billion with a balance of $11.56 billion. The Redbook Index for February posted a change of 4.3% compared to the previous period’s equivalent of 4.9%.

In Canada, the seasonally-adjusted Ivey Purchasing Managers Index for January beat the expectation of 55.2 with 60.1 on Monday. On Tuesday, Canadian Imports and Exports for December posted balances of $63.13 billion and $62.97 billion respectively, compared to $63.97 billion and $63.75 billion posted in the previous period. On the other hand, international merchandise trade for the period outshone the forecast of $-1 billion with a balance of $-0.16 billion.

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

Technically, the USD/CAD currency pair appears 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 stretch the current downward trend toward 1.3381 or lower to 1.3353. On the other hand, the bulls will be targeting short-term profits at about 1.3429 or higher at 1.3453.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a descending channel formation. This also indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will look to extend the current run of declines toward 1.3288 or lower to 1.3169. On the other hand, the bulls will look to pounce on profits at about 1.3502 or higher at 1.3613.