- US Dollar surged higher against the Canadian Dollar recently, and traded above the 100 hourly simple moving average.
- There was a triangle pattern formed on the hourly chart, which was broken.
- US Building Permits released by the US Census Bureau, at the Department of Commerce posted a reading of 1.150M in October 2015, just as the market expected.
- US Housing Starts on the other hand missed the forecast and came in at 060M for Oct 2015.
The USDCAD pair traded with a bullish tone recently, as it traded above the 100 hourly MA and a triangle formed on the hourly chart. However, it found resistance near the 61.8% Fib retracement level of the last leg from the 1.3371 high to 1.3297 low.
So, there is a possibility of a minor correction from the current levels, but buyers may appear near the 50 hourly MA.
The hourly RSI is above the 50 level, which might encourage buyers in the short term.
US Building Permits and Housing Starts
There were a couple of releases lined up in the US today that impacted the market trend. The US Building Permits, which shows the number of permits for new construction projects was released by the US Census Bureau, at the Department of Commerce. The forecast was lined up for a reading of 1.150M in October, and the result was the same. However, on the other hand, the US Housing Starts missed the mark and came below the forecast of 1.160M with a gain of 1.060M in October 2015.
The report stated that “Privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,150,000. This is 4.1 percent (±1.5%) above the revised September rate of 1,105,000 and is 2.7 percent (±2.2%) above the October 2014 estimate of 1,120,000“.
The USCAD pair may correct lower, but the broken triangle resistance might act as a support moving ahead.