The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3621 to trade at about 1.3567. The currency pair appears to be trading within a sideways channel formation in the 60-min chart.
Thursday’s pullback pushed the currency pair below the 100-hour moving average line. As a result, the pair appears to be moving closer to the overbought 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 both markets. On Thursday, Canada’s gross domestic product for September beat the expected (MoM) change of 0% with a change of 0.1%. On the other hand, the annualised GDP for Q3 missed the expectation of 0.2% with a change of -1.1%. Traders will be looking forward to Canadian employment data on Friday.
In the US, the personal consumption expenditures-price index for October missed the (MoM) expectation of 0.1% with a change of 0%. The (YoY) equivalent was in line with the estimate of 3%. The core personal consumption expenditures-price index for the month matched both the (MoM) and (YoY) expectations of 0.2% and 3.5%, respectively.
The Chicago Purchasing Manager’s Index for November beat the estimate of 45.4 with a reading of 55.8. Pending home sales for October also outperformed the estimate of -2% with a change of -1.5%, while the initial jobless claims beat 220k with a tally of 218k.
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. This indicates a lack of a clear directional bias in the market sentiment.
Therefore, the bears will be looking to extend the current pullback towards 1.3543 or lower to 1.4512. On the other hand, the bulls will look to pounce on profits at about 1.3594 or higher at 1.3621.
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 pair also seems to be heading closer to overbought levels of the 14-day RSI.
Therefore, the bears will be targeting extended declines at about 1.3444 or lower at 1.3330. On the other hand, the bulls will look to pounce on rebounds at about 1.3688 or higher at 1.3807.