On Thursday, the USD/CAD currency pair pulled back from the session highs of about 1.4400 to trade at about 1.4317. The currency pair also completed a downward breakout from an ascending channel formation in the 60-min chart.

The pair has since plummeted to trade slightly below the 100-hour moving average line. However, the currency pair still has 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 U.S. market. On Thursday, the U.S. initial jobless claims for the week ending March 14 came in lower than expected with 223k versus a forecast of 224k, up from the previous week’s equivalent of 220k.

On the other hand, the Philadelphia Fed Manufacturing Survey for March fell to 12.5 down from 18.1 in February, beating the forecasted reading of 8.5. The existing home sales change from February was 4.2% versus -4.7% in January. 

Earlier in the week, the Federal Reserve chose to keep the base interest rate unchanged at 4.5% in line with expectations. On the other hand, building permits for February came in slightly higher than expected with 1.456 million versus a forecast of 1.45 million, while housing starts for the period beat 1.38 million with 1.501 million.

The industrial production for February also exceeded expectations of 0.2% with a change of 0.7% (MoM). In Canada, the CPI for February beat the (MoM) forecast of 0.6% with 1.1%, while the (YoY) equivalent outshone 2.1% with 2.6%, up from 1.9%.

USD/CAD Technical Analysis (the 60-min Chart)

Technically, the USD/CAD currency pair completed a downward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI also pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards 1.4256 or lower to 1.4191. On the other hand, the bulls will look to pounce on rebounds at about 1.4386 or higher at 1.4445.

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 pulled back to avoid entering overbought conditions.

Therefore, the bears will target more downward movements at about 1.4135 or lower at 1.3938. On the other hand, the bulls will look to pounce on profits at about 1.4490 or higher at 1.4668.