The US Dollar (USD) inched higher against the Canadian Dollar (USD) on Thursday, increasing the price of USD/CAD to more than 1.3425 ahead of the Canada’s Building Permit news. The technical bias remains bullish because of a higher high in the recent upside move.
As of this writing, the pair is being traded around 1.3448. A hurdle can be seen near 1.3456, the high of last major upside move on hourly chart ahead of 1.3500, the psychological number and then 1.3590, another key resistance level on four-hour timeframe.
On the downside, a support may be seen near 1.3430, an immediate trendline support area ahead of 1.3415, the 23.6% fib level and then 1.3370, the 50% fib level. The technical bias shall remain bullish as long as the 1.3370 support zone is intact.
Canada Building Permits
The Statistics Canada is due to release the Building Permits data today during the US trading session. According to the average forecast of different economists, the building permits increased by 5.4% in March. The building permit report shows the number of permits for new construction projects. It implies the movement of corporate investments (the Canadian economic development). It tend to cause some volatility to the CAD. The more growing number of permits, the more positive (or bullish) for the CAD.
How USDCAD Reacted on Past Building Permit Reports
The USD/CAD didn’t show any noticeable movement after the release of Canada’s building permit reports if we look at the last two month’s data. This is because the building permit news is considered a medium-level volatile data.
Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy in short to medium term.