On Wednesday, the USD/CAD currency pair pulled back from the session highs of about 1.3700 ot trade at about 1.3671. The currency pair trades within a sideways channel formation in the 60-minute chart.

The pair has now fallen to trade slightly below the 100-hour moving average line after the pullback. However, the currency pair still has some 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 trades during a relatively busy period in the US market. On Wednesday, the US ISM Services PMI for February exceeded the expectation of 53.5, with a reading of 56.1, up from 53.8 in January. The ISM Services New Orders Index and Employment Index also rose to 58.6 and 51.8, respectively, up from the previous month’s equivalent of 51.3 and 50.3. 

On the other hand, the ISM Services Prices Paid fell to 63, down from 66.6 in January. Elsewhere, the ADP employment change for February rose to 63k, up from 11k in January, beating the forecasted change of 50k.

Earlier in the week, the US ISM Manufacturing PMI for February also beat the expected reading of 51.8, with 52.4, down from 52.6 in January. On the other hand, the ISM Services Prices Paid for the period rose to 70.5, up from 59 in January, beating the expected reading of 59.5. 

Looking forward, traders will be waiting for the US jobs data for February and the unemployment rate for the month on Friday, ahead of Canada’s Ivey Purchasing Managers’ Index data for February later in the day.

USD/CAD Technical Analysis (the 60-min Chart)

Technically, the USD/CAD currency pair trades within a sideways channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 1.3636 or lower to 1.3604. On the other hand, the bulls will look to pounce on rebounds at about 1.3703 or higher at 1.3737.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a slightly ascending channel formation. The 14-day RSI also supports a long-term bullish bias after bouncing back to avoid entering oversold conditions.

Therefore, the bulls will look to extend the latest rebound toward 1.3893 or higher to 1.4125. On the other hand, the bears will look to pounce on pullbacks at about 1.3428 or lower at 1.3188.