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USD/CAD - Rally Coinciding w/ Poor Canadian Building Permits

Before getting into the 1h chart and the short-term outlook, check out the bigger picture, showing USD/CAD topping and developing a bearish correction:
USD/CAD - Look Out for a Meaningful Bearish Correction

Building permits in Canada for the month of March fell at a rate of -3.0%.
This missed forecast around 4%.
The previous reading was revised up slightly from -11.6% to -11.3%.

Building permits data has not been good in 2014 so far. Total permits came in at about 5.98K, down from the 6.17K permits in February. As you can see from the graph below, building permits are now at the lowest point in a year.


(source: tradingeconomics)

The USD/CAD made a brief bullish attempt after the release, pushign above the overnight high. As traders monitored and faded USD/CAD from 1.10, which was a previous support pivot, we should also monitor the previous consolidation support area in the 1.0930-1.0940 area for resistance.


(usdcad 1h chart, 5/7)

The oscillators do reflect a market that is developing some intra-session consolidation.

If price is around 1.0930, and the stochastic is above 80 while the RSI is around 60, I would anticipate a bearish attempt at least in the intra-session time-frame.

Whether traders will push to new lows on the week is another story, though the prevailing bearish momentum gives it a good chance for another low.