The USD/CAD currency pair on Thursday pulled back off the trendline resistance at about 1.3384 to trade at about 1.3354. The currency pair appears to be trading within a descending channel formation in the 60-min chart.

The pair continues to trade at a considerable distance below the 100-hour moving average line. As a result, the currency pair seems to be pinned centrally in 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 both markets. On Wednesday, the Bank of Canada raised the base interest rate by 25 basis points to 4.75% ahead of the expected rate of 4.5%. The International Merchandise Trade for April came in at $1.94 billion, beating the expectation of $0.9 billion. Earlier in the week, the Ivey Purchasing Manager’s Index for May missed the expected reading of 57.2 with a reading of 53.5. While building permits for April missed the expected change of -5% with a change of -18.8% (MoM).

In the US, the initial jobless claims for last week missed the expected claim count of 235k with a tally of 261k. The continuing jobless claims for the period beat the estimated tally of 1.8 million with a claim count of 1.757 million. On Wednesday, US Goods and Services Trade Balance for April beat the expectation of $-75.2 billion with a balance of $-74.6 billion. The ISM Services PMI missed the expected reading of 51.5 with a reading of 50.3.

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

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

Therefore, the bears will be targeting extended declines at about 1.3333 or lower at 1.3307. On the other hand, the bulls will look to pounce on rebounds at about 1.3384 or higher at 1.3412.

USD/CAD Technical Analysis (the Daily Chart)

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

Therefore, the bears will be targeting long-term profits at about 1.3217 or lower at 1.3062. On the other hand, the bulls will look to pounce on rebounds at about 1.3496 or higher at 1.3638.