The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3180 to trade at about 1.3149. The currency pair appears to be trading within a sideways channel formation in the 60-min chart.
The pair has now declined to trade a few levels below the 100-hour moving average line. As a result, the currency pair seems to be moving closer to the oversold 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 both markets. On Thursday, the UIS initial jobless claims for the week ending June 16 missed the expected tally of 260k with a slightly higher tally of 264k. On the other hand, the continuing claims for the preceding week beat the forecasted claim count of 1.782 million with a tally of 1.759 million.
Elsewhere, the Chicago Fed National Activity Index for May missed the estimated reading of 0 with a reading of -0.15, while the existing home sales and home sales change for the month beat 4.25 million and -0.6%, respectively with 4.3 million and 0.2%.
In Canada, the employment insurance beneficiaries’ change for April decreased by 0.5% (MoM) compared to a decline of 0.6% in the previous period. Earlier in the week, Canadian retail sales for April beat the (MoM) expectation of 0.2% with a change of 1.1%, while the retail sales ex-autos outshone 0.4% with a change of 1.3% (MoM).
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair appears to be trading within a sideways channel formation in the 60-min chart. This indicates a lack of a clear short-term directional bias in the market sentiment.
Therefore, the bears will be looking to pounce on potential downward breakouts at about 1.3121 or lower at 1.3090. On the other hand, the bulls will look to pounce on rebounds at about 1.3180 or higher at 1.3210.
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 indicates a significant long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to ride the current run of declines toward 1.3032 or lower to 1.2919. On the other hand, the bulls will be targeting long-term profits at about 1.3272 or higher at 1.3378.