The USD/CAD currency pair on Friday pulled back from the session highs of about 1.3429 to trade at about 1.3389. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The pair seems to have fallen to trade below the 100-hour moving average line. As a result, the pair avoided rallying into the overbought levels of 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 the US market. On Friday, the preliminary Michigan consumer sentiment index for January outperformed the expectation of 60.5 with a reading of 64.6. The import price index for December outperformed the forecasted (MoM) and (YoY) change of -0.8% and 2.7%, respectively with a change of 0.4% and 3.5%. On the other hand, the export price index for the period missed the expectation of -0.5% (MoM) with a change of -2.6%. The (YoY) equivalent also came short of 5.2% with a change of 5%.

Earlier in the week, the initial jobless claims for last week outshone the expected claim count of 215k with a tally of 205k. The consumer price index ex-food and energy matched both the (MoM) and (YoY) forecasts of 0.3% and 5.7%, respectively. The general CPI for the period missed the (MoM) change of 0% with a change of -0.1%. The (YoY) equivalent was in line with the estimate of 6.5%.

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 targeting extended declines at about 1/3368 or lower at 1.3348. On the other hand, the bulls will look to pounce on profits at about 1.3408 or higher at 1.3429.

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 bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about 1.3312 or lower at 1.3226. On the other hand, the bulls will be targeting potential rebound profits at about 1.3457 or higher at 1.3543.