On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3581 to trade at about 1.3494. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair is 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 trades during a relatively busy period in both markets. In Canada, the BoC chose to keep the base interest rate unchanged at 2.25%, as expected. Traders will be looking forward to the gross domestic product data for November on Friday.

In the U.S., the initial jobless claims for last week edged slightly lower to 209k, down from 210k in the preceding week, missing the forecasted claim count of 205k. On the other hand, factory orders for November outperformed the expected change of 1.6%, with a change of 2.7% (MoM). Elsewhere, nonfarm productivity and unit labor costs for Q3 matched the forecasts of 4.9% and -1.9%, respectively. On Wednesday, the Federal Reserve also chose to keep the base interest rate unchanged at 3.75%, in line with expectations.

Earlier in the week, the U.S. housing price index for November exceeded the forecasted change of 0.3%, with a change of 0.6% (MoM). Durable goods orders for November also outshone the estimate of 0.5%, with a change of 5.3%, while the durable goods orders ex-transportation beat 0.3%, with a change of 0.5%.

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 also supports a bearish bias as it moves closer to oversold conditions.

Therefore, the bears will look to extend the latest declines toward 1.3406 or lower to 1.3308. On the other hand, the bulls will look to pounce on rebounds at about 1.3581 or higher at 1.3676.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias as it is on the verge of entering oversold conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3178 or lower to 1.2838. On the other hand, the bulls will look to pounce on profits at about 1.3816 or higher at 1.4139.