On Thursday, the USD/CAD currency pair pulled back off the session highs of about 1.3537 to trade at about 1.3493. The currency pair is trading within a descending channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels close to the 100-hour moving average line. However, the currency pair still has a lot of room left 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 the US market. On Thursday, the US initial jobless claims for the week ending January 19 missed the expected claim count of 200k with a significantly higher tally of 214k. The continuing claims for the preceding week also fell short of the forecasted tally of 1.828 million with a tally of 1.833 million.

Durable goods orders for December fell short of 1.1% with a change of 0%. The durable goods orders ex-transportation beat 0.2% with a change of 0.6%, while the durable goods orders ex-defence missed 1.1% with a change of 0.5%. 

Elsewhere, the preliminary annualised US gross domestic product for Q4 outshone the forecast of 2% with a change of 3.3%. The preliminary core personal consumption expenditures price index for the quarter matched the expected (YoY) change of 2%, unchanged from the previous period. In Canada, the BoC chose to keep the base interest rate unchanged at 5% in line with expectations. 

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-minute chart. However, the 14-hour RSI still seems to have a lot of room left to run before reaching oversold conditions. 

Therefore, the bears will be looking to extend the current run of declines toward 1.3452 or lower to 1.3408. On the other hand, the bulls will look to pounce on rebounds at about 1.3537 or higher at 1.3579.

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

Therefore, the bulls will be looking to extend the current rally towards 1.3633 or higher to 1.3767. On the other hand, the bears will look to pounce on pullbacks at about 1.3332 or lower at 1.3181.