The USD/CAD currency pair on Thursday pulled back to trade at the current 2-week lows of about 1.3250 following this week’s round of US data. The currency pair continues to trade within a descending wedge formation amid increased bearish pressure.

The pair has now dropped below the 100-hour and the 200-hour SMA lines in the 60-min chart. It is also closer to crossing to oversold levels of the 14-hour RSI. This could trigger a short-term rebound.

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. Earlier this week, the US ISM services PMI for September beat the expectation of 56.3 with 57.8. The ISM Services new orders index also beat 44.7 with 61.5. On the other hand, the ISM services employment index and prices paid missed expectations of 58.1 and 61.1, respectively with 51.8 and 59. The US Markit PMI Composite also came short of 54.4 with 54.3. The US JOLTs Jobs openings missed 6.685M with 6.493M. 

On Thursday, the US initial jobless claims for the week ending Oct. 2 missed the expectation of 820k with 840k. On the other hand, the continuing claims for the preceding week beat the expectation of 11.4m with 10.796M. In Canada, housing starts for September missed the (YoY) expectation of 240k with 209k. Going into Friday, traders will be looking forward to the Canadian job numbers for last month.

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

Technically, the USD/CAD currency pair appears to be trading within a descending wedge in the 60-min chart. This indicates a short-term bearish bias in the market sentiment. The pair is now closer to crossing to oversold levels of the 14-hour RSI.

The bulls will be targeting short-term profits at around 1.3300 or higher at 1.3357. On the other hand, the bears will look to pounce for profits at around 1.3212 or lower at 1.3150.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within an ascending channel. This indicates a long-term bullish bias in the market sentiment. The pair recently pulled back after approaching overbought levels of the 14-day RSI.

The bears will be looking to extend the current pullback towards 1.3086 or lower to 100.00% Fib level at 1.2946. On the other hand, the bulls will target profits at 1.3421 or higher at 61.80% Fib level at 1.3606.