USDCAD Pares Gains On Crude Oil Strength

USDCAD
USDCAD

USDCAD trades 0.31% higher at 1.4035 after the Canadian Building Permits declined by 7.3% in February, below the forecasts of -4.5% while the Housing Starts came in at 195K beating the expectations of 180K in March.

Economic data continue to disappoint in the U.S.; the MBA Mortgage Applications declined by 17.9% in the week ending April 3.
Crude oil price trading higher today amid headlines that Saudi Arabia announced that it would call an emergency meeting of OPEC to combat the current situation in the energy market. Analysts believe that Saudi Arabia and Russia trim their oil production if the United States also agrees to cut their output.

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USDCAD Resistance and Support

The USDCAD dropped below the 1.40 mark for the second time only since mid-March making fresh eight-day lows. The price might enter into consolidation mode after the recent correction from multi-year lows. The technical outlook remains bullish despite the recent correction, and higher levels might be on the card if the pair breaks above 1.42 mark.   

On the upside, the first resistance for USDCAD pair stands at 1.4081 the daily top. If USDCAD breaks higher, the next resistance level will be met at 1.4138 the high from yesterday’s trading session. In case of a move higher, the next hurdle stands at 1.4264 the high from April 6. 

On the other side, first support for the pair stands at 1.3985 the daily low. If USDCAD pair breaks below, the next support will be met at 1.3940 the low from yesterday’s trading session. Next support area is at 1.3728 the low from March 16 session.   

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