The U.S. dollar remained higher against the Canadian dollar on Monday despite data showing that Canadian building permits rose strongly for a second month in July, pointing to underlying strength in the construction sector. The Loonie, as the Canadian dollar is also known, remained under pressure after data on Friday showed that the country’s economy unexpectedly shed 11,000 jobs in August, indicating that the recovery is struggling to regain momentum. Reports also showed slackness in the Canadian economy on Friday after data revealed a worsened IVEY PMI. Analysts had expected an improving figure of 55.7 from a previous of 54.1, however results came out as 50.9, weakening the loonie more.
Intraday bias remains on the upside as 21 and 55 EMA trend indicators are crossed upward in the 1 hour, 4 hours, Daily, Weekly and Monthly charts signalling the continuation of the bullish trend. SSRC, Stochastic, RSI and MACD Oscillator indicators are showing bullish momentum is still intact, so am expecting further rise to 1.1008 resistance (Weekly R2) in the short term picture.