On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3891 to trade at about 1.3861. The currency pair trades within an ascending channel formation on the 60-minute chart.
The pair continues to trade slightly above the 100-hour moving average line, despite the latest pullback. As a result, the currency pair still has some room left to run before reaching 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 the US market. On Thursday, the US initial jobless claims for last week came in lower than expected, at 203k versus a forecast of 208k, down from the previous week’s equivalent of 207k.
On Wednesday, the US durable goods orders for July outperformed the expected change of 0.7%, with a change of 1.1%. On the other hand, the durable goods orders ex-transportation missed the forecasted change of 0.5%, with a change of 0.4%.
Elsewhere, the preliminary annualized US gross domestic product for Q2 matched the expected change of 1.5%. The preliminary gross domestic product price index for the quarter outpaced the forecasted change of 6.3%, with a change of 6.4%.
The US personal income for July outperformed the expected (MoM) change of 0.3%, with a change of 0.4%, while personal spending for the month matched the forecast of 0.2%.
On the other hand, the personal consumption expenditures price index for July outperformed both the (MoM) and (YoY) forecasts of 0.1% and 3.6%, respectively, with changes of 0.2% and 3.7%. The core personal consumption expenditures price index for the period matched the (MoM) and (YoY) forecasts of 0.2% and 3.3%, respectively.
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid entering overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards 1.3825 or lower to 1.3789. On the other hand, the bulls will look to pounce on rebounds at about 1.3891, or higher at 1.3925.
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 1.4049 or higher to 1.4236. On the other hand, the bears will look to pounce on profits at about 1.3684 or lower at 1.3479.