The USD/CAD currency pair on Friday extended gains to trade at a new weekly high of about 1.3410, before pulling back later to settle below 1.3390. The currency pair appears to be trading within an ascending channel formation in the 60-min chart.

The pair has now rallied to trade several levels above the 100-hour moving average line. As a result, the currency pair has moved closer to the overbought conditions 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 both markets. On Friday, the US existing home sales for October outperformed the expected tally of 4.38 million with a higher count of 4.43 million. On the other hand, the expected change in home sales came disappointed with a change of -5.9% compared to a forecasted change of -0.1%. Earlier in the week, the initial jobless claims for the week ended November 11, 2022, outshone the expectation of 225k with a slightly lower tally of 222k.

In Canada, the raw materials price index for October outperformed the expected change of 0% with a change of 1.3%. On the other hand, the industrial product price for the period outshone the expected change of 0.4% with a change of 2.4% (MoM). Earlier in the week, the Bank of Canada’s consumer price index for October missed the forecast of 6.3% with 5.8% (YoY), while the (MoM) equivalent failed to match the estimate of 0.7% with a change of 0.4%.

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 ride the current rally towards 1.3416 or higher to 1.3450. On the other hand, the bears will be targeting short-term profits at about 1.3359 or lower at 1.3322.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair seems 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 looking to stretch the current declines toward 1.3229 or lower to 1.2997. On the other hand, the bulls will look to pounce on profits at about 1.3516 or higher at 1.3752.