The USD/CAD currency pair on Thursday pulled back off session highs of about 1.3542 to trade at about 1.3485 after the latest US data. The currency pair appears to have completed a downward breakout from a descending channel formation.

The pair has now fallen to trade below the 100-hour moving average line in the 60-minute chart. As a result, the currency pair appears to be on the verge of entering 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 the US market. On Thursday, the US initial jobless claims for the week ending February 9 beat the expected claim count of 220k with a significantly lower tally of 212k. The continuing claims for the preceding week missed the forecasted claim count of 1.88 million with a tally of 1.895 million. Retail sales for January missed the expectation of -0.1% with a (MoM) change of -0.8%. The retail sales ex-autos also fell short of the forecasted (MoM) change of 0.2% with a change of -0.6%. 

The US industrial production for January missed the expected change of 0.3% with a change of -0.1% (MoM). On the other hand, the NY Empire State Manufacturing Index for February beat the forecasted reading of -15 with a reading of -2.4, while the Philadelphia Fed Manufacturing Survey for the period outshone -8 with a reading of 5.2. In Canada, housing starts for January missed the estimate of 235k with a tally of 223.6k.

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

Technically, the USD/CAD currency pair appears to have recently completed a downward breakout from a descending channel formation. The 14-hour RSI also seems to support a short-term bearish bias as it moves closer to oversold conditions.

Therefore, the bears will be targeting extended declines at about 1.3462 or lower at 1.3433. On the other hand, the bulls will look to pounce on potential rebounds at about 1.3512 or higher at 1.3542.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within an ascending channel formation. However, the 14-day RSI still seems to have some room left to run before reaching overbought conditions.

Therefore, the bulls will be targeting extended gains at about 1.3624 or higher at 1.3762. On the other hand, the bears will look to pounce profits at about 1.3350 or lower at 1.3193.