The USD/CAD currency pair on Thursday pulled back off current 2-week highs of about 1.3522 to trade at about 1.3475. The currency pair appears to have completed an upward breakout from a descending channel formation.

Thursday’s pullback pushed the currency pair to the 100-hour moving average line. However, the currency pair continues to trade centrally in the 14-hour RSI, which supports the current bull run.

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 Thursday, Canada’s New Housing Price Index for August outperformed the expected (MoM) change of 0% with a change of 0.1%. Earlier in the week, the consumer price index beat the (YoY) forecast of 3.8% with a change of 4%, while the (MoM) equivalent outshone the estimate of 0.2% with a change of 0.4%. The BoC’s core CPI for the period came in at 3.3% up from 3.2% in the previous period (YoY), while the (MoM) equivalent was 0.1% down from 0.5%.

In the US, the Philadelphia Fed Manufacturing Survey for September missed the expected reading of -0.7 with a reading of -13.5. The initial jobless claims for last week outshone the forecast of 225k with a tally of 201k, while the continuing claims for the preceding week beat 1.695 million with a tally of 1.662 million. Earlier in the week, the Federal Reserve voted to keep the base interest rate unchanged at 5.5% in line with expectations.

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

Technically, the USD/CAD currency pair appears to have recently completed an upward breakout from a descending channel formation. However, the hourly MACD continues to support a bearish bias after completing a downward crossover.

Therefore, the bears will be looking to extend the current declines toward 1.3454 or lower to 1.3430. On the other hand, the bulls will look to pounce on rebounds at about 1.3500 or higher at 1.3522.

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. The daily MACD also appears to support a bearish bias after completing a downward crossover.

Therefore, the bears will be looking to stretch the current run of declines toward 1.3380 or lower to 1.3284. On the other hand, the bulls will be targeting long-term profits at about 1.3600 or higher at 1.3683.