Forex: USD/CAD falls off session highs to 1.0255/58

FXstreet.com (Barcelona) - The USD/CAD has rocketed higher in recent minutes, on the heels of upbeat housing data in the United States. Following a European session, which held the USD/CAD in a narrow consolidation, the pair has now broken through resistance, trading off session highs near 1.0255/58 in these moments, up +0.37% Tuesday.

Earlier today in Canada, Wholesale Sales (MoM) were reported at +0.3% in January, missing consensus expectations of +0.4%. In addition, Manufacturing Shipments (MoM) fell -0.2% in January, vs. estimates calling for +0.9%. In the United States, Housing Starts (MoM) came in at 0.917M in February, beating projections of 0.915M. Finally, Building Permits (MoM) yielded a figure of 0.946M, against estimates of only 0.925M.

“The USD/CAD is generally bullish, though prices are just under a moderate resistance at 1.0243. With a mid level bullish candlestick pattern and a bullish engulfing in hourly charts, we look for possible buys on a close above this level.” Suggests Mark De La Paz, an analyst at FX Instructor.

After breaking through calculated resistance at 1.0243, the USD/CAD will encounter additional means of correction at 1.0270, onto the 1.0290 handle. Conversely, a break below the 1.0223 support will initiate short-term measures at 1.0197 ahead of 1.0177, writes De La Paz.