The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3759 to trade at about 1.3732. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair also continues to trade a few levels below the 100-hour moving average line. However, the pair still seems to have some room left 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 trades during a relatively busy period in both markets. On Thursday, the US initial jobless claims for the week ending August 2 exceeded expectations of 240k with a tally of 233k. The continuing claims for the period fell short of 1.87 million with a slightly higher tally of 1.875 million. Wholesale inventories for June were in line with the forecasted change of 0.2%, the same as the preceding period.

Earlier in the week, the US ISM Services PMI for July exceeded the forecast of 51 with a reading of 51.4. The ISM Services Prices Paid for the period also beat the expectation of 55.8 with a reading of 57, while the ISM Services New Employment Index outshone 46.5 with 51.1. Elsewhere, the S&P Global Composite PMI for last month missed the estimate of 55 with a reading of 54.3.

In Canada, the seasonally-adjusted Ivey Purchasing Managers’ Index for July fell short of the forecasted reading of 60 with a reading of 57.6, down from 62.5. Traders will be looking forward to the Canadian Jobs data on Friday.

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

Technically, the USD/CAD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI has also pulled back to move closer to the oversold conditions.

Therefore, the bears will look to stretch the current declines toward 1.3695 or lower to 1.3665. On the other hand, the bulls will look to pounce on rebounds at about 1.3759 or higher at 1.3787.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullbacks toward 1.3604 or lower to 1.3488. On the other hand, the bulls will look to ride the current run of gains toward 1.3832 or higher to 1.3940.