The USD/CAD currency pair on Wednesday plunged to a new weekly low of about 1.2850 following the latest round of US durable goods data. The currency pair appears to have found support at the confluence of the 100-hour and the 200-hour SMA lines.

The pair continues to trade within a descending channel formation in the 60-min chart. The latest pullback pushed it closer 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 the US market. On Wednesday, the US durable goods orders for November beat the expected change of o.6% with a change of 0.9%. On the other hand, nondefense capital goods orders ex-aircraft for the period missed the expectation of 0.6% with a change of 0.4% while personal spending came short of -0.2% with -0.4%. Personal income missed the expected (MoM) change of -0.3% with a change of -1.1% while durable goods orders ex-transportation came short of 0.5% with 0.4%.

Earlier in the week, the US gross domestic product for Q3 beat the expected (QoQ) change of -2% with 3.7%. Annualized GDP for the period outperformed 33.1% with 33.4%. In Canada, gross domestic product for October grew by 0.4% (MoM) compared to an equivalent growth of 0.8% in the previous period.

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. It has recently dropped closer to the oversold levels of the 14-hour RSI. This could trigger a rebound.

The bulls will be targeting short-term rebound profits at around 1.2883 or higher at 1.2929. On the other hand, the bears will look to extend the current bearish run towards 1.2800 or lower to 1.2755.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a sharply descending channel formation. This indicates a strong long-term bearish pressure in the market sentiment. It has recently rebounded to recover from oversold levels of the 14-day RSI.

The bears will be looking to ride the current rebound by targeting profits at around 1.2992 or higher at 1.3156. On the other hand, the bears will target long-term profits at around 1.2660 or lower at 1.2506.