On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3920 to trade at about 1.3889. The currency pair trades within a slightly ascending channel formation in the 60-minute chart.

The pair trades to trade closer to the 100-hour moving average line after Thursday’s pullback. The pullback prevented the currency pair from rallying 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 the U.S. market. On Thursday, the U.S. initial jobless claims for last week came in lower than expected, with 198k versus a forecast of 215k, down from the previous week’s claim count of 207k.

The NY Empire State Manufacturing Index for January also came in better than expected, with 7.7 versus a forecast of 1, while the Philadelphia Fed Manufacturing Survey for the month beat the expectation of -2, with a reading of 12.6.

Earlier in the week, U.S. retail sales for November exceeded the expected change of 0.4%, with a change of 0.6% (MoM). The retail sales ex-autos also beat the forecast of 0.4%, with a change of 0.5% (MoM). The producer price index for November matched the (MoM) forecast of 0.2%. The (YoY) equivalent outshone the forecast of 2.7%, with a change of 3%.

The consumer price index ex-food and energy for the period fell short of the forecasted change of 0.3%, with a change of 0% (MoM). The (YoY) equivalent outperformed the expected change of 2.7%, with a change of 3%.

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 rallying into overbought conditions.

Therefore, the bears will look to pounce on extended pullbacks at about 1.3855 or lower at 1.3822. On the other hand, the bulls will look to pounce on profits at about 1.3920 or higher at 1.3952.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair has completed an upward breakout from a descending channel formation. However, the 14-day RSI still has room left to run before reaching overbought conditions.

Therefore, the bulls will look to extend the latest rebound towards 1.4047 or higher to 1.4184. On the other hand, the bears will look to pounce on profits at about 1.3736 or lower at 1.3590.