The USD/CAD currency pair on Thursday rallied to trade at about 1.3221 following the latest round of US data. The currency pair appears to be trading within an ascending channel formation in the 60-min chart.

The pair has now rallied to trade a few levels above the 100-hour moving average line. As a result, the currency pair seems to be on the verge of breaking into the overbought levels of the 14-hour RSI.

USD/CAD Fundamentals Overview

From a fundamental perspective, the GBP/USD currency pair is trading at the back of a relatively busy period in the US market. On Thursday, the preliminary US gross domestic product for Q2 beat the expected change of 1.8% with a change of 2.4%. The preliminary gross domestic product price index for the period missed the estimated change of 3% with a change of 2.6%. 

Durable goods orders for June outperformed the expected change of 1% with a change of 4.7%. The durable goods orders ex-transportation also beat 0% with a change of 0.6%, while durable goods orders ex-defence outshone the forecast of 0% with a change of 6.2%.

Elsewhere, preliminary the core personal consumption expenditures for Q2 missed the (QoQ) estimate of 4% with a change of 3.8%. On the other hand, the initial jobless claims for the week ending July 21 beat the expected claim count of 235k with a tally of 221k, while the continuing claims outshone the estimated tally of 1.75 million with a claim count of 1.69 million.

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 targeting extended gains at about 1.3243 or higher at 1.3261. On the other hand, the bears will look to pounce on profits at about 1.3202 or lower at 1.3183.

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. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current run of declines at about 1.3104 or lower at 1.2977. On the other hand, the bulls will be targeting long-term profits at about 1.3353 or higher at 1.3458.