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USDCAD : Continues to Rise Despite Upbeat Canadian Data

USDCAD continues to surge on the 4 hour chart despite of upbeat Canadian Building Permits data. The official data showed that the building permits worth $9.2 billion in July up by 11.7% from June and the fourth consecutive monthly advance. Economists were expecting a decline by 4.2%. The demand for US dollar continues to be supported as traders now expect a change in language from FOMC with respect to the interest rate increase.

USDCAD : 4 Hour Chart

The pair on the 4 hour chart seems like following a descending triangle pattern according to which the pair should decline from the falling resistance trend line and find the nearest support at 1.0874. However if it continues to decline the next nearest support would be at 1.0828.

USDCAD : Daily Chart

Now if we have a look at the daily chart, the pair seems to be following an ascending triangle trend which gives a bullish signal and accordingly might break out above the resistance at 1.0986 of the triangle. The pair may post losses for a while if it continues to face resistance from it but eventually the bullish bias on the pair might help pushing above this resistance.