The USD/CAD currency pair on Wednesday pulled back off session highs of about 1.3765 to trade at about 1.3686 ahead of the Thanksgiving holidays. The currency pair continues to trade within a gently descending channel formation in the 60-min chart.
The pair has now fallen to trade 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 both markets. On Wednesday, the US initial jobless claims for the week ending November 17 beat the expected claim count of 225k with a tally of 209k. The Michigan Consumer Sentiment Index for November also outshone the forecast of 60.5 with a reading of 61.3.
Elsewhere, durable goods orders for October missed the expected change of -3.1% with a change of -5.4%. The durable goods orders ex-transportation also fell short of 0.1% with a change of 0%, while nondefence capital goods orders ex-aircraft missed 0.1% with a change of -0.1%.
In Canada, the consumer price index for October missed the (YoY) expectation of 3.2% with a change of 3.1%. The (MoM) equivalent was in line with the forecast of 0.1%. The BoC’s core consumer price index for October delivered (MoM) and (YoY) changes of 0.3% and 2.7%, respectively versus changes of -0.1% and 2.8% in the previous period. Traders will be looking forward to Canada’s retail sales data and the US preliminary S&P Global PMIs on Friday.
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair appears to be trading within a gently descending channel formation in the 60-minute chart. This indicates a slight short-term bearish bias in the market sentiment.
Therefore, the bears will be targeting short-term profits at about 1.3653 or lower at 1.3621. On the other hand, the bulls will look to pounce on rebounds at about 1.3723 or higher at 1.3752.
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. The pair remains a few levels above the 100-day moving average line despite a recent pullback.
Therefore, the bulls will be looking to extend the current rally towards 1.3775 or higher to 1.3871. On the other hand, the bears will look to pounce on pullbacks at about 1.3606 or lower at 1.3509.