- Summary:
- USD/CAD is on a decline ahead of housing starts data from the US and Canada. Rising crude oil prices have supported the Canadian dollar.
USD/CAD is on a decline ahead of data from the US and Canadian housing industry. The Canadian economy has been improving following the rise in crude oil prices. On Friday, WTI futures were at $63.52 after dropping to $57.70 earlier in the month.
A comparison of the US and Canadian housing starts, both scheduled for release in today’s session, will further highlight the stability of the Canadian dollar against the greenback. Analysts expect the construction of 250,000 new buildings to have begun in Canada compared to February’s 245,900. In the US, the predicted 1.613 million is higher than the prior month’s 1.421 million. The US will also publish its building permits numbers.
USDCAD Technical Outlook
USD/CAD is down by 0.22% at 1.2517. It has dropped by about 0.91% from this week’s high of 1.2630. Besides, on a four-hour chart, it is currently trading below the 20 and 50-day exponential moving averages.
In my view, USD/CAD will remain in the range of between 1.2500 and 1.2600 as investors react to data from the US and Canadian housing industry. However, with the current rise in crude oil price, I have a bullish bias. A move past 1.2600 on the upside will place the next targets at the former resistance levels of 1.2650 and 1.2737.
On the flip side, if the bears manage to push the price below 1.2500, the levels to watch out for are 1.2436 and 1.2366.
USD/CAD Chart
