The USD/CAD currency pair on Wednesday plunged to trade at a new 2-week  low of about 1.2520 following the latest round of data. The currency pair continues to trade within a highly volatile sideways channel formation in the 60-min chart.

The pair also dropped several levels below the 100-hour moving average. It has now moved closer to the oversold levels of the 14-hour RSI. This could trigger a short-term rebound going into the tail-end of the week.

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 Wednesday, the Bank of Canada’s core consumer price index for June beat the expected (YoY) change of 2.4% with a change of 2.7%. However, the (MoM) equivalent came short of expectations with 0.3% versus 0.4%. On the other hand, general CPI missed expectations both on a (YoY) basis and (MoM).

In the US, the Federal Reserve kept the base interest rate unchanged at 0.25%. On Tuesday, the US durable goods orders for June missed the expected change of 2.1% with 0.8%. Also, durable goods orders ex-aircraft missed the market expectation of 0.7% with 0.5%, while durable goods orders ex-transportation came short of 0.85 with 0.3%. On the other hand, the S&P/Case-Shiller Home Price Indices for May outperformed the expected (YoY) change of 16.4% with 17%.

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

Technically, the USD/CAD currency pair appears to be trading within a sideways channel formation in the 60-min chart. The pair has recently pulled back to trade closer to the support. It has also slipped closer to oversold levels of the 14-hour RSI.

The bulls will be targeting short-term rebound profits at around 1.2550 or higher at 1.2587. On the other hand, the bears will look to pounce for extended declines around 1.2491 or lower ta 1.2453.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair appears to have recently pulled back after a significant rally. The currency pair has now returned to the normal trading zone of the 14-day RSI after recently venturing into overbought conditions.

The bears will look to ride the current pullback by targeting profits at around 1.2416 or lower at 1.2290. On the other hand, the bulls will target long-term profits at around 1.2637 or higher at 1.2756.