USD/CAD bounces off 1.0550

FXstreet.com (Edinburgh) - The Canadian dollar is advancing against its neighbour on Monday, as the USD rally seems to be taking a breather.

USD/CAD capped by 1.0600

The recent upside in the pair has been struggling to follow through the key resistance at 1.0600 during last week, returning to the current intraday range of 1.0550-1.0580. Canadian docket will bring the Building Permits during May (-6.2% exp.) and the BoC Business Outlook Survey for Q2. Richard Kelly, FX Researcher at TD Securities, commented, “The last iteration showed the economic activity responses picking up a touch from the prior survey, while the price and capacity responses weakened further, hitting their lowest level on aggregate since the recession”.

USD/CAD key levels

At the moment the pair is down 0.23% at 1.0560 with the immediate support at 1.0518 (MA10d) followed by 1.0512 (low Jul.5) and finally 1.0472 (low Jul.4). On the upside, a break above 1.0586 (high Jul.8) would target 1.0600 (psychological level) en route to 1.0609 (2013 high Jul.5).

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