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USD/CAD at September highs on US Housing surprise

FXStreet (London) - USD/CAD has climbed to September highs, up 0.26% today at 1.1108 as the dollar gains momentum.

It had looked to been a quiet day for data, before US Housing numbers kicked up some surprises, igniting dollar gains. First US Mortgage Applications declined sharply -4.1% in September from 7.9% previous,. This was followed by a colossal jump in US New Home Sales Change MoM, which flew from 1.9% previous to 18% in August, in the biggest move since 1992.

The news saw the Dollar Index push higher, dragging USD/CAD along for the ride. The pair had been relatively uninspired today, seemingly content to range trade overnight and through the European session between 1.1063-1086. However, the news saw the pair climb to post a high at 1.1121 before finding a touch of resistance at the daily R1 at 1.1113.

USD/CAD Technicals

USD/CAD spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish. Currently RSI is at 60.60, down from the last hourly print at 72.32, with ADX at 23.64, up from its previous close at 14.90.

Meanwhile, daily RSI is in neutral territory at 60.70.

A climbing 200 SMA on the hourly USD/CAD chart is currently at 1.1049, up from 1.1017 at the previous close. Over the past 20 days, the exponential average closing price is 1.0975, and trending higher.

Spot is presently trading at 1.1102, and next resistance can be seen at 1.1115 (Daily Classic R1), 1.1124 (Daily High), 1.1151 (Daily Classic R2), 1.1197 (Weekly Classic R2) and 1.1218 (Daily Classic R3).

Next support to the downside can be found at 1.1093 (Monthly High), 1.1085 (Yesterday's High), 1.1080 (Weekly Classic R1), 1.1078 (Daily Open) and 1.1078 (Weekly High).

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