The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3720 to trade at about 1.3693. The currency pair appears to be trading within a descending 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 close 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 US building permits for May missed the expectation of 1.45 million with 1.386 million, while housing starts for the month fell short of 1.37 million with 1.277 million.
On the other hand, the initial jobless claims for the week ending June 14 missed the expected claim count of 235k with a slightly higher tally of 238k, while the continuing claims for the preceding week missed 1.81 million with 1.828 million. Elsewhere, the Philadelphia Fed Manufacturing Survey for June fell short of the forecasted reading of 5 with a reading of 1.3.
Earlier in the week, US retail sales for May missed the expected (MoM) change of 0.2% with a change of 0.1%, while the retail sales ex-aircraft fell short of 0.2% with a change of -0.1%. The US industrial production for May outperformed the expected (MoM) change of 0.3% with a change of 0.9%.
In Canada, the new housing price index for May matched the expected (MoM) change of 0.2%, unchanged from the previous period. Traders will be looking forward to the Canadian retail sales data for May on Friday.
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair is trading within a descending channel formation in the 60-minute chart. The 14-hour RSI also seems to support a bearish bias as it moves closer to oversold conditions.
Therefore, the bears will be targeting extended declines at about 1.3679 or lower at 1.3667. On the other hand, the bulls will look to pounce on rebounds at about 1.3707 or higher at 1.3720.
USD/CAD Technical Analysis (the Daily Chart)
In the daily chart, the USD/CAD currency pair is trading within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will be targeting extended pullbacks at about 1.3645 or lower at 1.3594. On the other hand, the bulls will be targeting long-term profits at about 1.3742 or higher at 1.3790.