The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3642 to trade at about 1.3609. The currency pair continues to trade within a descending channel formation in the 60-minute chart.

The pair has now descended to trade a few levels below the 100-hour moving average line. However, the currency pair still seems to have a lot of room left to run 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 both markets. On Thursday, the Philadelphia Fed Manufacturing Survey for May missed the expected reading of 8 with a reading of 4.5.

Industrial production for April also fell short of the forecasted change of 0.1% with a change of 0% (MoM), while the initial jobless claims for the week ending May 10 missed the expected claim count of 220k with a slightly higher tally of 222k. Elsewhere, US housing starts for April fell short of 1.42 million with 1.36 million, while building permits for the period failed to match the expectation of 1.48 million with 1.44 million.

In Canada, the seasonally adjusted housing starts for April beat the expected (YoY) change of 238k with a tally of 240.2k, while manufacturing sales for March fell short of the forecasted (MoM) change of -1.4% with a change of -2.1%. Wholesale sales for March outperformed the expectation of -1.3% with a (MoM) change of -1.1%.

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 has recently bounced back to move closer to overbought conditions.

Therefore, the bulls will be targeting extended rebounds at about 1.3642 or higher at 1.3676. On the other hand, the bears will look to pounce on pullbacks at about 1.3571 or lower at 1.3533.

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 has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 1.3486 or lower at 1.3371. On the other hand, the bulls will be looking to ride the current rally towards 1.3725 or higher to 1.3844.