Looks to test topside resistance
The Canada building permits were weaker at -0.9% for the month of February. The market was expecting a bounce back of 3.3% from the -12.3% (revised from -12.9%) plunge in January. Weather could still be impacting (it is February data). However, it is still weak.
The USDCAD has moved higher as a result (it is back above the close from yesterday at 1.2543).
From a technical perspective, the price lows today held just above the corrective lows from yesterday. That level also was a swing high going back to April 6. So the price seems to have found a floor.
On the topside, the USDCAD is approaching the 200 hour moving average (green line in the chart above at 1.2566). The 50% retracement of the move down from the March 31 high to the April 8 low comes in at 1.25845. A move above, should solicit more upside momentum.
From the oil front, inventory data continues to be more bearish for a while. Having said that the WTI crude futures for May is up 1.03% in trading today . Should crude reverse, it would be an extra push to the upside for the USDCAD.
