USD/CAD Bounces Off the 50 SMA, Despite the Upbeat Canadian Wholesale Figures - Forex News by FX Leaders
USD/CAD H4 Chart

USD/CAD Bounces Off the 50 SMA, Despite the Upbeat Canadian Wholesale Figures

Posted Tuesday, January 19, 2021 by
Skerdian Meta • 1 min read

USD/CAD has been in a downtrend for nearly a year, following the bullish momentum in crude Oil since last April. Moving averages have been keeping it bearish since November, but the 200 SMA (purple) which is the ultimate resistance is the target now, as the price bounced off the 50 SMA (yellow) earlier today, despite the positive wholesale sales report from Canada.

Wholesale Sales Report from Canada

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  • November wholesale trade sales +0.7% vs +1.0% expected
  • Seventh consecutive month of gains
  • Prior was +1.0%
  • Manufacturing sales -0.6% vs -0.4% expected
  • Manufacturing sales ex autos +0.2%
  • November inventories decreased 0.6% to $89.6 billion-its lowest level since March 2019
  • Full report
Sales in November were 4.4% higher than in February, so the pre-pandemic losses have been completely erased. All subsectors are also up year-over-year.
The machinery, equipment and supplies subsector has been the strongest since the pandemic with building supplies close behind.
Wholesalers are running lean inventories and that suggests there’s more good news to come in the pipeline even with new orders down 1.2% in November.
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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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