Forex: USD/CAD finds resistance in front of R2

FXstreet.com (Barcelona) - Having spiked close to 30 pips today to opst a high at 0.9873, USDCAD has found an element of resistance between Classic and Fibonacci R2 resistance at 0.9880 and 0.9868.

Momentum still looks to be to the upside with spot trading just below the high following a European session charged following the Greek upgrade, fairly bullish economic data out of Europe and word of progress on the US fiscal cliff front. US MBA Mortgages came in disappointing poorly, leading to a burst of USD weakness in an increasingly thin market. Housing starts disappointed expectations at 0.861m/0.873m while Building Permits bettered expectations at 0.899m/0.875m. Canadian Wholesale Sales also beat analyst expectations at 0.9%/0.3%.

Bijoy Kar of MIG Bank notes that the pair is moving sideways between the support at 0.9825 (13/12/2012 low) and the resistance at 0.9888 (10/12/2012 high). The recent break of the support at 0.9875 (07/11/2012 low) favours a bearish bias. Another support is at 0.9764 (11/10/2012 low).