The USD/CAD currency pair on Thursday pulled back off the current weekly highs of about 1.3609 to trade at about 1.3592. The currency pair continues to trade within an ascending channel formation in the 60-minute chart.

The pair is still hovering a few levels above the 100-hour moving average line despite the pullback. Thursday’s pullback prevented the currency pair from ascending into 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 Thursday, the US initial jobless claims for the week ending December 1 outperformed the expectation of 222k with a claim count of 220k.

The continuing claims for the preceding week also beat the forecast of 1.91 million with 1.861 million. On Wednesday, the ADP Employment Change for November missed the estimate of 130k with a tally of 103k. Unit labour costs for Q3 also fell short of -0.9% with a change of -1.2%, while the nonfarm productivity for the quarter beat 4.9% with a change of 5.2%.

In Canada, the BoC voted to keep the base interest rate unchanged at 5% in line with expectations. The seasonally adjusted Ivey Purchasing Manager’s Index for November outperformed the expectation of 54.2 with a reading of 54.7. On Thursday, the Canadian building permits for October missed the expected (MoM) change of 2.9% with a change of 2.3%.

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. However, the recent pullback prevented the 14-hour RSI from ascending into the overbought levels.

Therefore, the bears will be targeting extended pullbacks at about 1.3570 or lower at 1.3551. On the other hand, the bulls will look to pounce on profits at about 1.3609 or higher at 1.3628.

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. However, the 14-day RSI seems to have bounced back to avoid falling into the oversold levels.

Therefore, the bulls will be targeting extended rebounds at about 1.3683 or higher at 1.3772. On the other hand, the bears will look to pounce on profits at about 1.3490 or lower at 1.3391.