On Wedneday, the USD/CAD currency pair pulled back from the session highs of about 1.3710 to trade at about 1.3696. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair also continues to trade slightly above the 100-hour moving average line, despite the latest pullback. As a result, the currency pair still has 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 Tuesday, the US consumer price index for April came in stronger than expected, with a (YoY) change of 3.8% versus a forecast of 3.7%, up from the previous month’s equivalent of 3.3%. The (MoM) equivalent matched the forecasted change of 0.6%, down from 0.9% in March. 

On the other hand, the consumer price index ex-food and energy outperformed the expected (MoM) and (YoY) changes of 0.3% and 2.7%, respectively, with 0.4% and 2.8%, up from the previous month’s equivalent of 0.2% and 2.6%. The US Monetary budget statement for April missed the expectation of $220 billion, with $215 billion, down from the preceding month’s equivalent of $-164 billion. 

Looking forward, traders will be waiting for the US producer price index data for April on Wednesday, ahead of the initial jobless claims data for last week and the retail sales data for April on Thursday. 

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. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3683 or lower to 1.3668. On the other hand, the bulls will look to pounce on profits at about 1.3710 or higher at 1.3724.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a sharply 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 1.3770 or higher to 1.3848. On the other hand, the bears will look to pounce on profits at about 1.3617 or lower at 1.3536.