On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3796 to trade at about 1.3775 after the latest data. The currency pair trades within a slightly ascending channel formation in the 60-minute chart. 

However, the pair continues to trade slightly above the 100-hour moving average line, despite the pullback. Thursday’s pullback prevented the currency pair from ascending 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 U.S. initial jobless claims for last week came in better than expected, with 224k versus a forecast of 225k, down from the preceding week’s equivalent of 237k. 

The Philadelphia Fed Manufacturing Survey for the period fell to -10.2, down from -1.7, missing the forecasted reading of 3. Elsewhere, the U.S. consumer price index for November missed the expected (YoY) change of 3.1%, with a change of 2.7%. The Consumer Price Index ex-food and energy also fell short of 3%, with a change of 2.6%.

In Canada, the consumer price index for November missed the (YoY) expectation of 2.4%, with a change of 2.2%. The BoC’s core CPI was unchanged at 2.9% (YoY), while the (MoM) equivalent fell to -0.1%, down from 0.6%. Traders will be looking forward to the Canadian retail sales data for October on Friday.

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

Technically, the USD/CAD currency pair trades within a slightly 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 1.3752 or lower to 1.3728. On the other hand, the bulls will look to pounce on profits at about 1.3796 or higher at 1.3820.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias as it edges closer to oversold conditions.

Therefore, the bears will look to ride the current run of declines toward 1.3675 or lower to 1.3572. On the other hand, the bulls will look to pounce on rebounds at about 1.3876 or higher at 1.3973.