Forex: USD/CAD: bounces up to 1.0290 as Canadian building permits decline

By IBTimes Staff Reporter | January 11 2010 9:00 AM

FXstreet.com (Barcelona) - Canadian Dollar has dropped after the decline on building permits in November, and the USD/CAD has bounced from 1.0260 to 1.0295, although the pair remains trading within the session''s consolidating channel, from 1.0250 to 1.0300.

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On a wider perspective, the Dollar has remained consolidating at the aforementioned range during Asian and European sessions, as decline from Dec 17 high at 1.0748 found support at 1.0250, its lowest level since October 20.

Support levels below 1.0250 (Jan 11 low), lies at 1.0205 low (Oct 15 low) and 1.000 (psychological area). On the upside, initial resistance lies at 1.0295, and above here, 1.0315/25 and 1.0375/85 (Jan 7/8 high).

Canadian Building permits have declined by 4.9% in November, almost twice the 2.6% decline expected by the markets, following a 18% increase in October. Construction activity, however, has remained growing in December, according housing starts figures, which increased by 5.9% in December.

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