On Wednesday, the USD/CAD currency pair pulled back from the session highs of about 1.3715 to trade at about 1.3700. The currency pair trades within an ascending channel formation in the 60-minute chart.
The pair continues to trade slightly above the 100-hour moving average line, despite the late pullback. Wednesday’s pullback prevented the currency pair from entering 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 the U.S. market. On Wednesday, the initial jobless claims for last week fell to 199k, down from 215k in the preceding week, beating the forecasted claim count of 220k. The continuing claims for the preceding four weeks also decreased to 1.866 million, down from 1.915 million, in the corresponding period.
On Tuesday, the housing price index for October came in better than expected with a (MoM) change of 0.4%, versus a forecast of 0.1%, up from the preceding month’s equivalent of -0.1%. On the other hand, the S&P/Case-Shiller Home Price Indices for the period outperformed the expected change of 1.1%, with a change of 1.3%, down from the previous month’s equivalent of 1.4%. Elsewhere, the Chicago Purchasing Managers’ Index for December came in at 43.5, up from 36.3, beating the forecasted reading of 39.5.
Earlier in the week, U.S. pending home sales for November exceeded the expected change of 1%, with a change of 3.3% (MoM), up from 2.4% in the previous period. The (YoY) equivalent also improved with a change of 2.6%, versus -0.4% in October.
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 current pullback towards 1.3683 or lower to 1.3667. On the other hand, the bulls will look to pounce on profits at about 1.3713 or higher at 1.3730.
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 1.3806 or higher to 1.3904. On the other hand, the bears will look to ride the current run of declines toward 1.3593 or lower to 1.3487.