On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3675 to trade at about 1.3599. The currency pair trades within a descending channel formation in the 60-minute chart.

The currency pair has now fallen to trade several levels below the 100-hour moving average line. As a result, the 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 the U.S. market. On Thursday, the U.S. initial jobless claims for the previous week remained unchanged at 248k, missing the forecasted claim count of 240k. 

The producer price index for May also missed the expectation of 0.2% with a change of 0.1% (MoM), while the (YoY) equivalent was in line with the forecast of 2.6%. On the other hand, the producer price index ex-food and energy missed both the (MoM) and (YoY) forecasts of 0.3% and 3.1%, respectively with 0.1% and 3%.

Earlier in the week, the U.S. consumer price index for May missed the (MoM) and (YoY) forecasts of 0.2% and 2.5%, respectively with changes of 0.1% and 2.4%. The consumer price index ex-food and energy also fell short of 0.3% (MoM) and 2.8% (YoY) with changes of 0.2% and 2.8%, respectively, while the monthly budget statement for May came in better than expected with $-316 billion versus a forecast of $-325 billion.

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 edges closer to oversold conditions.

Therefore, the bears will look to stretch the current declines toward 1.3563 or lower to 1.3523. On the other hand, the bulls will look to pounce rebounds at about 1.3636 or higher at 1.3675. 

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 moves closer to oversold conditions.

Therefore, the bears will look to ride the current downward momentum towards 1.3435 or lower to 1.3310. On the other hand, the bulls will look to pounce on profits at about 1.3736 or higher at 1.3861.