The USD/CAD currency pair on Friday pulled back off the current weekly highs of about 1.3260 to trade at around 1.3187 after US retail sales data. The latest pullback prevented the pair from ascending above the 50% fib level. It is now pinned just above the 23.60% fib level.

The currency pair is trading just below the 200-hour SMA line. The 100-hour SMA is a few levels below. Today’s pullback pushed the currency pair closer to oversold 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 Friday, the US retail sales control group for September posted a change of 1.4%. This was better than the expected change of 0.2%. In general terms, retail sales for September beat the (MoM) expectation of 0.7% with 1.9%. Retail sales ex-autos for the period also outperformed the (MoM) expectation of 0.5% with 1.5%.  However, the industrial production for September came short of 0.5% with -0.6% while capacity utilization slightly missed 71.9% with 71.5%.

On the other hand, the Michigan Consumer Sentiment Index for October outperformed 80.5 with 81.2.  Business inventories for August also outshone the expected change of 0.4% with a change of 0.1%. In Canada, Manufacturing Sales for August missed the expected (MoM) change of -1.4% with a change of -2%.

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

Technically, the USD/CAD currency pair appears to have recently pulled back off weekly highs in the 60-min chart. This indicates an attempt by the bears to retain control of the pair in a descending channel.

They will be targeting short-term profits at around 1.3150 or lower at 1.3110. On the other hand, the bulls will target rebound profits at around 38.20% and 50% fib levels at 1.3223 and 1.3260, respectively.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to be trading within a descending channel. This indicates a strong long-term bearish bias in the market sentiment. The pair recently jumped above the median line, which indicates an attempt by the bulls to trigger a reversal.

They will be targeting long-term profits at around 76.40% Fib level at 1.3357 or higher at 1.3472. On the other hand, the bears will look to pounce for profits at around 1.3086 or lower at 1.2946.