The USD/CAD currency pair on Thursday pulled back off the current 2-week highs of about 1.3285 to trade at about 1/3250. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The currency pair continues to trade several levels above the 100-hour moving average line despite the pullback. As a result, the currency pair still has a lot of room to run before reaching 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 US initial jobless claims for the week ending June 23 outshone the expected claim count of 265k with a lower tally of 239k. The continuing claims for the preceding period beat the forecasted tally of 1.765 million with a claim count of 1.742 million. The annualised gross domestic product for Q1 also exceeded the estimated change of 1.3% with a change of 2%, while the gross domestic product price index for the period missed 4.2% with a change of 4.1%.

In Canada, the consumer price index for May matched the expected (YoY) change of 3.4%, while the (MoM) equivalent fell short of the forecast of 0.5% with a change of 0.4%. The BoC’s core CPI for the period also missed the estimated (YoY) change of 3.9% with a change of 3.7%, while the (MoM) equivalent fell short of 0.5% with a change of 0.4%. 

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 looking to extend the current declines toward 1.3233 or lower at 1.3212. On the other hand, the bulls will be targeting potential rebounds at about 1.3267 or higher at 1.3285.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to have recently completed an upward breakout from a descending channel formation. This indicates a significant change in the market sentiment from bearish to bullish.

Therefore, the bulls will be targeting long-term profits at about 1.3319 or higher at 1.3380. On the other hand, the bears will look to pounce on pullbacks at about 1.3180 or lower at 1.3115.