USD/CAD & Oil prices w/ Housing Starts: More weakness for the Loonie?

Canadian Dollar started the week with very volatile moves because of recent OPEC developments and statement by Russian President, Vladimir Putin. Now it’s being favoured by the market sentiment and helped to push lower the USD/CAD across the board and today at 12:15 GMT we expect the release of Housing Starts for September in Canada, where the consensus is an increase from 182,7K to 190K and it can be a mid-to-high macro event in terms of volatility.

The technical analysis for USD/CAD at H4 chart is showing that a bullish trend line can be tested soon, following the strong pullback made during Monday’s session. There is also a support zone at the 1.3140 level, where the Loonie may gain momentum to resume the upward bias. If CAD remains strengthening in coming hours, then a decline towards the 1.3090 level is possible, while a breakout above the 1.3237 level should open the doors to test 1.3294.