On Friday, the USD/CAD currency pair pulled back from the session highs of about 1.4043 to trade at about 1.3994. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now fallen to trade a few levels below the 100-hour moving average line. Friday’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 trades during a relatively busy period in both markets. On Friday, Canada’s annualised gross domestic product for Q3 matched the expected change of 1%, compared to a change of 2.2% in the preceding quarter. The (QoQ) equivalent also was lower with 0.3% versus 0.5% in the preceding quarter.
On the other hand, the gross domestic product for September missed the (MoM) forecast of 0.3% with a change of 0.1%, up from 0% in August. On Thursday. Canada’s current account balance for Q3 beat the expected balance of $-9.3 billion with $-3.23 billion.
In the U.S., the initial jobless claims for the week ending November 22 edged lower to 213k, down from 215k in the preceding week, beating the forecast of 217k. The personal income for October exceeded the forecasted (MoM) change of 0.3% with a change of 0.6%, while personal spending beat 0.3% with 0.4%.
On the other hand, the personal consumption expenditures – price index for October matched the (MoM) and (YoY) expectations of 0.2% and 2.3%, respectively. The core personal consumption expenditures – price index for the period also matched 0.3% (MoM) and 2.8% (YoY).
USD/CAD Technical Analysis (the 60-min Chart)
Technically, the USD/CAD currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI also supports a bearing bias after pulling back to avoid rallying into overbought conditions.
Therefore, the bears will try to extend the current decline towards 1.3949 or lower to 1.3907. On the other hand, the bulls will look to pounce on rebounds at about 1.4043 or higher at 1.4084.
USD/CAD Technical Analysis (the Daily Chart)
In the daily chart, the USD/CAD currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to avoid rallying ascending into overbought conditions.
Therefore, the bears will be targeting an extended pullback at about 1.3813 or lower at 1.3604. On the other hand, the bulls will look to ride the current rally towards 1.4178 or higher to 1.4379.