The USD/CAD currency pair on Friday rallied to retest the current 29-month highs of about 13825 after bouncing off new weekly lows at 1.3600. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

The pair now appears to have formed strong support along the 100-hour moving average line. As a result, the currency pair has advanced to trade 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 the US market. On Friday, the core personal consumption expenditures price index for September outperformed the expected (MoM) change of 0.5% with a change of 0.6%.

On the other hand, the (YoY) outshot the estimate of 4.7% with a change of 4.9%. The general personal consumption expenditures price index for the month missed the expected (YoY) change of 6.6% with a lower growth rate of 6.2%, while the (MoM) equivalent was in line with forecasts at 0.3%.

In Canada, the gross domestic product for July beat the expected (MoM) change of -0.1% with a change of 0.1% on Thursday. There was not much economic activity in the north-mots American country, which seems to have worked against the loonie.

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

Technically, the USD/CAD currency pair seems 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 run of gains toward 1.3893 or higher to 1.3988. On the other hand, the bears will look to pounce on potential pullbacks at about 1.3736 or lower at 1.3652.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the USD/CAD currency pair seems to have recently completed an upward breakout from a gently ascending channel formation. This indicates an abrupt increase in the bullish sentiment in the market.

Therefore, the bulls will be targeting long-term profits at about 1.4123 or higher at 1.4537. On the other hand, the bears will look to pounce on profits at about 1.3467 or lower at 1.3044.