The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3227 to trade at about 1.3200. The currency pair appears to be trading within a sideways channel formation in the 60-minute chart.

Thursday’s pullback pushed the currency pair a few levels below the 100-hour moving average line. As a result, the pair appears to be trading closer to 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 US initial jobless claims for the week ending December 22 missed the expected claim count of 210k with a relatively higher tally of 218k.

The continuing claims for the preceding week increased to 1.875 million up from 1.861 million in line with expectations. Pending Home sales for November also missed the forecasted change of 1% with a change of 0% (MoM), while the (YoY) equivalent improved to -5.2% compared to a change of -8.5% in the previous month.

Earlier in the week, the Richmond Fed Manufacturing Index for December missed the expected reading of -7 with a reading of -11. The Housing Price Index for November also fell short of the forecasted (MoM) change of 0.5% with a change of 0.3%, while the S&P/Case-Shiller Home Price Indices for the period fell short of the expected change of 5% with a change of 4.9%.

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-minute chart. However, the 14-hour RSI has recently pulled back to move closer to the oversold conditions.

Therefore, the bears will be targeting extended pullbacks at about 1.3177 or lower at 1.3150. On the other hand, the bulls will look to pounce on profits at about 1.3227 or higher at 1.3254.

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. The 14-day RSI also seems to support a long-term bullish bias as it edges closer to oversold conditions.

Therefore, the bears will be targeting long-term profits at about 1.3102 or lower at 1.2997. On the other hand, the bulls will look to pounce on rebounds at about 1.3304 or higher at 1.3438.