Today at 12:30 GMT will be released the US building permits for August and market’s consensus is calling for an increase from 1.144M to 1.1700M and at 16:45 GMT, BoC’s governor Poloz is expected to speak. Both events should produce some kind of volatility in the USD/CAD pair, ahead of interest rate decisions by the Fed and BoJ, but that should be limited, as the markets are pricing the event as for right now, before the “main event”.
The technical picture for USD/CAD at H4 chart is still bullish and the resistance zone of 1.3237 can be tested once again, especially during Poloz’s speech and if the US data comes above the expectations. If the Loonie manages to break the 1.3237 handle, then it can reach the 1.3300 psychological level. However, if data disappoints, but Poloz is hawkish, then a breakout below the support level of 1.3144 is highly expected to reach the 200 SMA price zone in coming days.
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Origin: FX BAZOOKA
