On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.3924 to trade at about 1.3901. The currency pair trades within an ascending channel formation in the 60-minute chart.

The pair continues to trade a few levels above the 100-hour moving average line, despite the latest pullback. Thursday’s pullback helped the currency pair recover from 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, US nonfarm productivity for Q1 missed the expected change of 0.8%, with a change of 0.3%. Unit labor costs for the quarter also failed to match the forecasted change of 2.3%, with a change of 1.8%. 

On the other hand, the initial jobless claims for last week increased to 225k, up from 212k in the preceding week, missing the forecasted claim count of 213k. Earlier in the week, the ISM Services PMI for May outperformed the expectation of 53.8, with a reading of 54.5, up from 53.6 in April. 

The factory orders for April also beat the forecasted (MoM) change of 4.6%, with a change of 4.8%, while the S&P Global Composite PMI for May missed 51.7, with a reading of 51.5. Elsewhere, the ADP employment change for the month exceeded the forecasted change of 117k, with a change of 122k, up from the preceding month’s equivalent of 105k.

In Canada, traders will be waiting for the Canadian employment change and the unemployment rate for May on Friday.

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 recover from overbought conditions.

Therefore, the bears will look to stretch the latest pullback towards 1.3870 or lower to 1.3848. On the other hand, the bulls will look to pounce on profits at about 1.3924 or higher at 1.3948.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair trades within a sideways channel formation. However, the 14-day RSI has recently bounced back to move closer to overbought conditions.

Therefore, the bulls will look to extend the latest rebound towards 1.4141 or higher to 1.4340. On the other hand, the bears will look to pounce on profits at about 1.3651 or lower at 1.3435.