On Friday, the USD/CAD currency pair pulled back from the session highs of about 1.3777 to trade at about 1.3734 after the latest data. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair continues to trade a few levels below the 100-hour moving average line after the pullback. As a result, the currency pair moved closer to 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 both markets. On Friday, Canada’s gross domestic product for June missed the (MoM) forecast of 0.1% with a change of -0.1%. The annualized gross domestic product for Q2 also fell short of the forecasted change of -0.6% with a change of -1.6%.

Earlier in the week, the Canadian current account balance for Q2 missed the expectation of -19.4 billion with a balance of -21.16 billion.

In the U.S., the Chicago Purchasing Managers’ Index for August missed the expectation of 46 with a reading of 41.5. The Michigan Consumer Expectations Index for the period also fell short of 57.2, with a reading of 55.9, while the Michigan Consumer Sentiment Index missed 58.6 with a reading of 58.2.

On the other hand, the UoM 5-year consumer inflation expectations for the month failed to match the forecast of 3.9% with a rate of 3.5%, while the UoM 1-year consumer inflation expectation fell short of 4.95 with a rate of 4.8%.

USD/CAD Technical Analysis (the 60-min Chart)

Technically, the USD/CAD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI has also recently pulled back to move closer to oversold conditions.

Therefore, the bears will look to stretch the current pullback towards 1.3692 or lower to 1.3648. On the other hand, the bulls will look to pounce on rebounds at about 1.3777 or higher at 1.3818.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.3551 or lower to 1.3374. On the other hand, the bulls will look to pounce on profits at about 1.3926 or higher at 1.4110.