The USD/CAD currency pair rebounded in the afternoon (GMT) hours to trade above 1.3400 after an early pullback had triggered a retest of weekly lows. The currency pair is now back trading within touching distance of monthly highs.

USD/CAD Fundamentals Overview

From fundamental perspective traders will be looking at Thursday’s upcoming US economic reports including the US Initial Jobless Claims expected at around 225k versus last month’s 221k. On the other hand, Continuing Jobless Claims are expected to remain unchanged at around 1.75 million.

Traders will also be watching the US Gross Domestic Product Price Index (GDPPI), which analysts expect to be around 1.8% the same as the previous period.

Traders are trading on the back of US Trade Balance report, which beat expectations when announced earlier on Wednesday (-$51.1 Billion versus a consensus forecast of -$57 billion).

USD/CAD Technical Analysis (the 240-min Chart)

From a technical perspective, the USD/CAD currency pair’s bullish bias appears to ready to take it close to a restest of the monthly highs of about 1.3467. The pair is trading in what appears to be cone-shaped bottom base in an upward trend movement. It recently bounced off the 50-period and the 100-period SMA, which could act as crucial resistance points.

As such, the bulls will be targeting opportunities at around the 1.3450 level while the bears will be hoping for an immediate pullback that could create opportunities at around the 1.3390 level, or lower at 1.3375.

USD/CAD Technical Analysis (the Daily Chart)

In the daily chart, the long-term bullish bias appears to hold with the pair trading within an ascending channel. It is currently barely halfway up from the recent plunge that occurred at the start of the year, which suggests that even in the intermediate, the bulls maintain control.

Nonetheless, the bears will be looking to pounce for intermediate to long-term profits at around 1.3375 and 1.3250 levels while the bulls will hope to remain in control by targeting opportunities at 1.3487 and the current yearly highs of 1.3687.

In summary, while oil prices have recovered significantly to give the loonie something to lean on against the greenback, the USD appears to have too much in the locker for the CAD to handle. The bullish outlook remains strong for now.