The USD/CAD currency pair on Friday pulled back off the current weekly highs of about 1.3807 to trade at about 1.3747. The currency pair continues to trade within an ascending channel formation in the 60-min chart.
Friday’s pullback pushed the current pair towards the 100-hour moving average line. As a result, it has since recovered from the overbought conditions of the 14-hour RSI to trade within the regular zone.
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 Friday, US durable goods orders for February missed the expected change of 0.6% with a change of -1%. Durable goods orders ex-defence also fell short of 0% with a change of -0.5%, while durable goods orders ex-transportation missed the expected change of 0.2% with a change of 0%. On the other hand, the nondefense capital goods orders ex-aircraft outperformed the expectation of 0% with a change of 0.2%.
In Canada, retail sales for January outperformed the expected (MoM) change of 0.7% with a change of 1.4%. On the other hand, retail sales ex-autos beat the (MoM) forecast of 0.6% with a change of 0.9%. Earlier in the week, the Bank of Canada’s core consumer price index for February outperformed the expected (YoY) change of 4.6% with a change of 4.7%, while the (MoM) equivalent missed the estimated change of 0.8% with a change of 0.5%. The general CPI for the period fell short of both the (MoM) and (YoY) forecasts.
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-min chart. This indicates a significant short-term bullish bias in the market sentiment.
Therefore, the bulls will be looking to extend the current rally toward 1.3775 or higher to 1.3807. On the other hand, the bears will look to pounce on profits at about 1.3720 or lower at 1.3688.
USD/CAD Technical Analysis (the Daily Chart)
In the daily chart, the USD/CAD currency pair seems to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.
Therefore, the bulls will be targeting long-term profits at about 1.3859 or higher at 1.3973. On the other hand, the bears will be looking to pounce on potential pullbacks at about 1.3639 or lower at 1.3517.