The USD/CAD currency pair on Thursday pulled back off the current monthly highs to trade at about 1.2804 after the US GDP data. The currency pair had rallied to trade at about 1.2876 earlier in the day.

The pair has now plummeted to complete a downward breakout from an ascending channel formation in the 60-min chart. The pair continues to trade above the 100-hour moving average line despite falling closer to the oversold conditions 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 Thursday, the preliminary US annualised gross domestic product for Q1 missed the expected change of 1.1% with a change of 01.4%. 

The core personal consumption expenditures for the same period also came short of 5.4% with a (QoQ) change of 5.2%. On the other hand, the preliminary general personal consumption expenditure prices for the quarter outshone the forecasted change of 5.9% with 7%, while the gross domestic price index for the period beat 7.3% with 8%.

Earlier in the week, the US pending home sales for March beat the expected (MoM) change of 01.6% with a change of -1.2%, while the S&P/Case-Shiller Home Price Indices for February outperformed the (YoY) expectation of 19% with 20.2%. Elsewhere, the general housing price index for February beat the (MoM) expectation of 1.4% with 2.1%.

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

Technically, the USD/CAD currency pair seems to have recently plummeted to complete a downward breakout from an ascending channel formation in the 60-min chart. This indicates a significant change in the market sentiment from bullish to bearish.

Therefore, the bears will be looking to extend the current pullback towards 1.2770 or lower to 1.2729. On the other hand, the bulls will be targeting potential rebound profits at about 1.2840, or higher at 1.2876.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair seems to be trading within a sideways channel formation. The pair recently bounced off the trendline support to surge towards the trendline resistance.

Therefore, the bulls will be targeting extended gains at about 1.2941, or higher at 1.3068. On the other hand, the bears will look to pounce on long-term pullbacks at about 1.2666, or lower at 1.2509.