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USDCAD Rises To Session Highs, Bullish Technical Theme Persists

CANADA
  • Weaker building permits/labor productivity data very moderately weighing on the Canadian dollar following the release with USDCAD extending its intra-day recovery from the 1.3555 lows to print fresh session highs of 1.3614.
  • USDCAD bulls remain in the driver’s seat for now and short-term pullbacks are considered technically corrective.
  • Sights are on the key near-term resistance at 1.3705, Dec 16 high. A clear break of this hurdle would strengthen bullish conditions and clear the way for a test of the 1.3800 handle.
  • The support to watch lies at the 50-day EMA. It intersects at 1.3476 and a clear break would be seen as a short-term bearish development.

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