Solid News

Under the pressure of poor macroeconomic data, the Canadian currency is trading around 1.3600.

Last week, the US housing market showed little growth prospects but the Canadian building permits report in January recorded a negative trend of 4.0% against expectations of growth of 1.5%, and the cost of issued permits fell to 9.8B Canadian dollars. The residential sector showed the largest contraction, falling by 6.6% to 6.1B Canadian dollars, while the non-residential sector increased by 0.7% to 3.7B Canadian dollars. Thus, one of the leading sectors of the Canadian economy remains in decline, which does not allow us to talk about its recovery soon.

The US dollar finished the week without any pronounced dynamics, stopping at 104.400 in the USD Index. Friday's reports can be considered positive: the index of purchasing managers for the non-manufacturing sector from the Institute of Supply Management (ISM) in February did not fall to the analysts' forecast of 54.5 points but remained close to the January values of 55.1 points. The indicator in the services sector rose to 50.6 points from 46.8 points earlier, as expected by experts.

On the daily chart, the trading instrument has left the limits of the global Triangle pattern with dynamically narrowing boundaries 1.3550–1.3280, having broken its resistance line last week.

Technical indicators gave a signal to buy: the range of fluctuations of the EMA on the Alligator indicator is expanding upwards, and the AO histogram is forming rising bars in the buying zone.

Resistance levels: 1.3660, 1.3880. | Support levels: 1.3500, 1.3300.