On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3715 to trade at about 1.3685. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade a few levels above the 100-hour moving average line, despite the latest pullback. Thursday’s pullback prevented the currency pair from ascending into the overbought 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 both markets. In Canada, the consumer price index for January missed the expected (MoM) change of 0.1%, with a change of 0%. The (YoY) equivalent also fell short of 2.4%, with a change of 2.3%. The BoC’s core CPI for the month fell to 2.6%, down from 2.8% in December. Traders will be waiting for Canada’s retail sales data for December on Friday.

In the US, the Philadelphia Fed Manufacturing Survey for February rose to 16.3, up from 12.6 in January, beating the forecast of 7.5. The initial jobless claims for last week also came in better than expected, with 206k versus a forecast of 225k, down from the previous week’s claim count of 229k. On the other hand, pending home sales for January missed the (MoM) expectation of 1.3%, with a change of -0.8%.

Earlier in the week, the US durable goods orders for January beat the expectation of -2%, with a change of -1.4%. The durable goods ex-transportation also exceeded the forecast of 0.3%, with a change of 0.9%, while the nondefense capital goods orders ex-aircraft outshone the estimate of 0.5%, with a change of 0.6%.

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

Technically, the USD/CAD currency pair trades within an ascending channel formation in the 60-minute chart. The 14-hour RSI has also pulled back to avoid entering overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3651 or lower to 1.3616. On the other hand, the bulls will look to ride the current run of gains toward 1.3716 or higher to 1.3751.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 1.3823 or higher to 1.3954. On the other hand, the bears will look to pounce on profits at about 1.3564 or lower at 1.3424.