On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3748 to trade at about 1.3727. 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 latest pullback. Thursday’s pullback prevented the currency pair from advancing 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. On Thursday, the US initial jobless claims for last week came in better than expected, with 205k versus a forecast of 215k, down from the previous week’s equivalent of 213k. The Philadelphia Fed Manufacturing Survey for March also beat the forecast of 10, with a reading of 18.1, up from 16.3 in February. 

On Wednesday, the Federal Reserve decided to keep the base interest rate unchanged at 3.75%, as expected. Factory orders for January also matched the forecasted (MoM) change of 0.1%. 

In Canada, the Bank of Canada voted to keep the base interest rate unchanged at 2.25% as expected. Earlier in the week, Canada’s consumer price index for February missed the expectation of 0.6%, with 0.5%, up from 0% in January. The (YoY) equivalent also fell short of 1.9%, with 1.8%, down from 2.3%. 

Looking forward, traders will be waiting for the Canadian retail sales data for January on Friday.

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 entering overbought conditions.

Therefore, the bears will look to extend the latest pullback towards 1.3689 or lower to 1.3652. On the other hand, the bulls will look to pounce on profits at about 1.3761 or higher at 1.3795.

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 entering oversold conditions.

Therefore, the bulls will look to stretch the latest rebound towards 1.3844 or higher to 1.3973. On the other hand, the bears will look to pounce on profits at about 1.3595 or lower at 1.3466.