The USD/CAD currency pair on Tuesday pulled back off session highs of about 1.4343 to trade at 1.4075 as the coronavirus pandemic continued to wreak havoc on global markets.  The currency pair had experienced gains over the previous few sessions after hitting a 2-week bottom of 1.3946 last week.

The currency pair is now edging closer to the oversold levels of the 60-min RSI following today’s pullback. It has also crossed below the 100-hour SMA while the 200-hour SMA is a few pips higher.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair trading at the back of a relatively busy week in the US market. The coronavirus pandemic continues to dictate movements in the global financial markets. Last week, President Trump signed a $2.2 trillion bill passed 96-0 by the US Senate to try to mitigate the adverse economic effects of the coronavirus pandemic.

Currently, the US has the highest number of those who have tested positive for COVID-19 with over 185,000. The global tally stands at around 858,000. Canada, on the other hand, has reported just over 8,500 positive cases of the deadly virus. The coronavirus has already claimed more than 42,000 deaths, and is one of the most contagious diseases that Mankind has faced in recent memory.

Tomorrow, investors will be looking forward to the Canadian Markit Manufacturing data for March. In the US, the ISM Manufacturing and the ISM Manufacturing Employment Index are expected to boost the greenback while the ADP Employment Change could disappoint.

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

Technically, the USD/CAD currency pair appears to be experiencing a short-term bullish bias after hitting a bottom last week. However, Tuesday’s short-term pullback could provide the bears with some optimism while the bulls will be looking to retain control.

Therefore, the bears will target profits at around 1.3946 or lower at 1.3823. On the other hand, the bulls will target the next rebound at around 1.4179 or higher at 1.4306.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to have recently made a sharp pullback following massive bull-run. Starting January this year, the pair rallied from 1.2959 to top 1.4675. It has since pulled back off overbought levels of the daily RSI.

The bulls will be targeting long-term rebound profits at around 1.4368 or higher at 1.4675. On the other hand, the bears will look to extend losses towards 1.3769 or lower at 1.3547.