The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3730 to trade at about 1.3666. The currency pair appears to be trading within a sideways channel formation in the 60-minute chart.

The pair has now fallen to trade a few levels below the 100-hour moving average line. As a result, the currency pair appears to be moving closer to 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 preliminary annualised US gross domestic product for Q1 missed the expected change of 2.5% with a change of 1.6%, down from 3.4% in the previous period.

The preliminary US gross domestic product price index for the period improved to 3.1% up from 1.7% in the previous quarter. On the other hand, the preliminary core personal consumption expenditures for Q1 exceeded expectations of 3.4% with (QoQ) change of 3.7%, up from 2% in the previous period.

The initial jobless claims for the week ending April 19 outshone the forecasted claim count of 214k with a significantly lower tally of 207k while pending home sales for March beat the expected (MoM) change of 0.3% with a change of 3.4%, up from 1.6% in the preceding period.

In Canada, the retail sales for February missed the expected (MoM) change of 0.1% with a change of -0.1%. The retail sales ex-autos for the period also fell short of the forecasted change of 0% with a change of -0.3% (MoM). 

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. The 14-hour RSI has recently pulled back to move closer to the oversold levels, indicating s slight bearish bias.

Therefore, the bears will be targeting extended pullbacks at about 1.3631 or lower at 1.3596. On the other hand, the bulls will look to pounce on rebounds at about 1.3700 or higher at 1.3730.

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 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will be looking to ride the current pullbacks toward 1.3558 or lower to 1.3442. On the other hand, the bulls will be targeting long-term profits at about 1.3777 or higher at 1.3885.