- US Dollar tumbled against the Canadian Dollar, as the latter one gained momentum after the recent rise in oil prices.
- There was a bullish trend line formed on the hourly chart of the USDCAD pair, which was broken recently to clear the way for more losses.
- US Housing Starts released by the US Census Bureau, at the Department of Commerce posted a reading of 1.089M, less than the forecast of 1.170M in March 2016.
- US Building Permits also came below the forecast, and posted a reading of 1.086M in March 2016.
The US Dollar was crushed against the Canadian dollar, as the Kuwait strike pushed oil prices higher and in turn helped the CAD. There was a sharp downside reaction in the USD/CAD pair, as it moved below a bullish trend line formed on the hourly chart.
The USDCAD pair looks set for a move towards the 1.236 extension of the last wave from the 1.2744 low to 1.2990 high.
One may consider selling short-term rallies in the USDCAD pair as long as it is below the 100 hourly simple moving average.
US Housing Starts
Today in the US, the Housing Starts, which is an indicator that tracks how many new single-family homes or buildings were constructed was released by the US Census Bureau, at the Department of Commerce. The forecast was slated for a reading of 1.170M in March 2016, but it came in at 1.089M.
Similarly, the US Building Permits posted a lower than the forecast reading of 1.086M in March 2016. The report stated “Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,086,000. This is 7.7 percent (±1.2%) below the revised February rate of 1,177,000, but is 4.6 percent (±0.9%) above the March 2015 estimate of 1,038,000“.
It looks like there is more room for a downside in USDCAD in the near term.