The USD/CAD currency pair on Thursday pulled back off the session highs of about 1.3760 to trade at about 1.3740. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.

Thursday’s late pullback pushed the currency pair slightly below the 100-hour moving average line. As a result, the pair avoided rallying into the overbought 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 initial jobless claims for the week ending June 7 missed the expectation of 225k with a claim count of 242k.

The US producer price index for May also fell short of the forecasted (MoM) and (YoY) changes of 0.1% and 2.5%, with changes of -0.2% and 2.2%, while the PPI ex-food and energy missed 0.3% (MoM) and 2.4% (YoY) with changes of 0% and 2.4%, respectively. 

Earlier in the week, the US consumer price index for May missed the (MoM) and (YoY) expectations of 0.1% and 3.4%, respectively with changes of 0% and 3.3%, while the CPI ex-food and energy for the period fell short of 0.3% (MoM) and 3.5% (YoY) with changes of 0.2% and 3.2%, respectively.

Elsewhere, the Federal Reserve voted to keep the base interest rate unchanged at 5.5% in line with expectations. In Canada, building permits for April outperformed the expected change of 5.2% with a change of 20.5% (MoM).

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

Technically, the USD/CAD currency pair appears to be trading within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid advancing into overbought conditions.

Therefore, the bulls will be looking to ride the current run of gains toward 1.3755 or higher to 1.3767. On the other hand, the bears will look to extend the current pullbacks to 1.3726 or lower to 1.3714.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within an ascending channel formation. However, the 14-day RSI still seems to have more room left to run before reaching overbought conditions.

Therefore, the bulls will be targeting long-term profits at about 1.3793 or higher at 1.3846. On the other hand, the bears will look to pounce on profits at about 1.3683 or lower at 1.3626.