The USD/CAD currency pair on Wednesday pulled back off the session highs of about 1.3625 to trade at about 1.3597. The currency pair appears to be trading within an ascending channel formation in the 60-min chart.

The pair remains a few levels below the 100-hour moving average line despite the recent rally. Wednesday’s late pullback prevented the currency pair from ascending to the overbought levels of the 14-hour RSI.

USD/CAD Fundamentals Overview

From a fundamental perspective, the USD/CAD currency pair is trading at the back of a relatively busy period in the US market. On Wednesday, the US producer price index for September outperformed the (MoM) expectation of 0.4% with a change of 0.5%. The (YoY) equivalent also beat 1.6% with a change of 2.2%. The US producer price index ex-food and energy outshone the forecasted (YoY) change of 2.3% with a change of 2.7%, while the (MoM) equivalent beat 0.2% with a change of 0.3%. 

Earlier in the week, the US NFIB business optimism index for September missed the expected reading of 91.1 with a reading of 90.8. Traders will be looking forward to the consumer price index data on Thursday. In Canada, building permits for August outperformed the expected (MoM) change of 0.5% with a change of 3.4%. Traders will be looking forward to the August Manufacturing Sales data on Friday.

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

Technically, the USD/CAD currency pair appears to be trading within an ascending channel formation in the 60-minute chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to stretch the current run of gains toward 1.3625 or higher to 1.3650. On the other hand, the bears will look to pounce on pullbacks at about 1.3571 or lower at 1.3543.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to stretch the current pullback towards 1.3508 or lower to 1.3413. On the other hand, the bulls will look to pounce on rebounds at about 1.3685 or higher at 1.3780.