The Canadian dollar edged higher against USD at yesterday's session. The Canadian buildings permits rose above expectations, but remains below the March readings. Contractors took $7.8 billion for building permits in April, 11.6% up from the previous month. That was the second consecutive monthly of an advance. Besides, housing starts data provided mild support to the loonie as well. The trend measure of housing starts in Canada was 181,231 units in May compared to 179,524 in April, according to Canada Mortgage and Housing Corporation (CMHC). A fall in oil prices depressed CAD in the longer term. Besides, USD enjoying longer-term bullish view ahead of the rate hike buzz.
Today, traders eye the US jobs data and Thursday's retail sales data.
Technical view: The pair extended its fall for the second day. The pair failed to hold the 100Dsma. In addition, bears managed to close below that. At todays Asian session, the pair exactly rejected at 100Dsma. The pair is trading below 20Wsma 1.2430 as well. These factors are sending mild bearish signals in the near term. The pair is trading at 1.2405 compared to Monday's closing price of 1.2411. The support is found at 1.2350 and 1.2310. Crucial levels for bulls are found at 1.2290. The pair made a double top at 1.2563 edge lower. The weekly support is found at 1.2230. Until the pair trades below 1.2430 and 1.2465, bears will expand lower targets at 1.2300 and 1.2250. The pair is trading on a verge of making a new swing low. We recommend fresh selling below 1.2350 with targets at 1.2325, 1.2295, and 1.2250. In case if the US delivers positive readings, buying will be available above 1.2475 with targets at 1.2500, 1.2510,1.2530, and 1.2550.
To contact the author of this analysis, please email- firstname.lastname@example.org