On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.4050 to trade at about 1.4030 after the latest U.S. data. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair has now plummeted to trade several levels below the 100-hour moving average line. Thursday’s pullback pushed the currency pair closer to 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 both markets. On Thursday, Canada’s current account balance for Q3 improved to $-9.68 billion, up from $-21.56 billion, beating the forecasted balance of $-16.5 billion. Traders will be looking forward to the gross domestic product data for September and Q3 on Friday.

In the U.S., durable goods orders for September outperformed the expectation of 0.3%, with a change of 0.5%. On the other hand, the durable goods orders ex-defense fell short of the forecasted change of 1.9%, with a change of 0.1%, while the durable goods orders, ex-transportation, outshone the estimate of 0.2%, with a change of 0.6%.

Elsewhere, the initial jobless claims for last week fell to 216k, down from the preceding week’s equivalent of 222k, beating the forecasted claim count of 225k. The Chicago Purchasing Managers’ Index for November fell to 36.3, down from 43.8, missing the forecasted reading of 44.3.

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 bearish market sentiment, as it edges closer to oversold conditions.

Therefore, the bears will look to extend the current decline towards 1.4007 or lower to 1.3984. On the other hand, the bulls will look to pounce on rebounds at about 1.4050 or higher at 1.4073.

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 into overbought conditions.

Therefore, the bears will look to stretch the current pullback towards 1.3926 or lower to 1.3819. On the other hand, the bulls will look to ride the current run of gains toward 1.4135 or higher to 1.4245.