The USD/CAD currency pair on Thursday pulled back off session highs of about 1.3698 to trade at about 1.3667. The currency pair appears to be trading within a descending channel formation in the 60-minute chart.

Despite the pullback, the pair still remains a few levels above the 100-hour moving average line. Thursday’s pullback prevented the currency pair from advancing into 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 New Housing Price Index for April beat the expected (MoM) expectation of 0.1% with a change of 0.2% up from 0% in the preceding period. The (YoY) equivalent also posted an improved change of -0.1% up from -0.4% in the preceding period.

Earlier in the week, Canada’s consumer price index for April matched both the (MoM) and (YoY) forecasts of 0.5% and 2.7%, respectively, down from the previous month’s equivalent of 0.6% and 2.9%.

In the US, the initial jobless claims for the week ending May 17 outperformed the expected claim count of 220k with a significantly lower tally of 215k. Earlier in the week, existing home sales for April missed the forecasted (MoM)  change of 4.21 million with a slightly lower tally of 4.14 million.

Traders will be looking forward to the preliminary US S&P Global Manufacturing and Services PMIs later on Thursday.

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. The 14-hour RSI also seems to support a short-term bearish after pulling back to avoid rallying into overbought conditions.

Therefore, the bears will be targeting extended pullbacks at about 1.3652 or lower at 1.3637. On the other hand, the bulls will look to pounce on rebound profits at about 1.3684 or higher at 1.3698.

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. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will be targeting extended rebound profits at about 1.3757 or higher at 1.3847. On the other hand, the bears will be targeting long-term profits at about 1.3576 or lower at 1.3481.