USDCAD rallies on upbeat US and weak Canada’s data
The US dollar rallied against its Canadian counterpart on Friday, boosted by upbeat US housing data, while loonie came under pressure on weaker than expected Canada’s data.
US building permits rose by 7.4% in January, compared to -0.2% in December while housing starts rose by 9.7% in January, beating forecast for 3.4% increase and vs upward-revised December’s figure to -6.9%.
Housing starts hit the highest since Jan 2017 and building permits rose to Nov 2017 level after showing negative results in Dec/Jan.
On the other side, Canada’s Manufacturing sales fell into negative territory (-0.3%) in December after huge jump previous month (3.8%).
Fresh bullish acceleration is forming higher low at 1.2450 (today’s spike low) where bear-leg from 1.2687 high was contained by converged 20/30SMA’s.
Recovery rally cracked 1.2540 barrier (Fibo 38.2% of 1.2687/1.2450 pullback) and pressures next strong barrier at 1.2555 (daily cloud base).
Daily close above these barriers would generate stronger reversal signal and shift focus towards 1.2596 (Fibo 61.8% of 1.2687/1.2450) and 1.2637 (daily cloud top).
Res: 1.2555; 1.2568; 1.2596; 1.2637
Sup: 1.2506; 1.2450; 1.2416; 1.2352