USD/CAD Pulls Back Off Trendline Resistance to Trade at 1.2772

The USD/CAD currency pair on Friday pulled back from the trendline resistance to trade at about 1.2772 following the latest round of US data. The currency pair appears to be trading within a gently ascending channel formation in the 60-min chart.

Friday’s pullback prevented the currency pair from advancing towards the overbought conditions of the 14-hour RSI. Therefore, it remains several levels below the 100-hour moving average line.

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 Friday, the preliminary Michigan consumer sentiment index for August beat the expected reading of 52.7 with a higher reading of 55.1. On the other hand, the initial jobless claims outperformed the expectation of 263k with a lower clam count of 262k, while the continuing claims for the preceding week missed 1.407 million with a higher tally o 1.428 million. 

The US producer price index ex-food and energy for July matched the (YoY) expectation of 7.6% with 7.6%, while the CPI ex-food and energy missed both the (MoM) and (YoY) estimates of 0.5% and 6.1%, respectively with 0.3% and 5.9%. The general CPI for the period also came short on both the (MoM) and (YoY) basis.

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

Technically, the USD/CAD currency pair seems to be trading within a gently ascending channel formation in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment.

Therefore, the bears will be targeting potential rebound profits at about 1.2817, or higher at 1.2855. On the other hand, the bears will be looking to stretch Friday’s pullback towards 1.2734 or lower to 1.2695.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a gently ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to ride the current gains towards 1.2882 or higher to 1.2996. On the other hand, the bears will be targeting long-term profits at about 1.2638, or lower at 1.2518.

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