USD/CAD Reverses at the 100 SMA, As US Oil Inventories Post A Big Decline
Skerdian Meta•Wednesday, April 14, 2021•1 min read
USD/CAD has been on a bearish trend for about a year now. The USD decline stared the downtrend, then the bullish Oil prices kept it going, adding further fuel to it. As a result, this pair fell around 23 cents from top to bottom. But it retraced higher in the third week of March, although, highs have been getting lower since then, suggesting that the retrace is over.
The price fell below the 200 SMA (purple) yesterday, while today the 100 SMA turned into resistance. USD/CAD reversed down from there and lost more than 50 pips, after the EIA report showed a major decline in US Oil reserves.
Weekly EIA US Oil Inventory Report
- Last week’s crude oil inventories -5890K vs -2700K expected
- Prior week was 3522K
- Gasoline +309K vs +900K expected
- Distillates -2083K vs +1000K expected
- Cushing +346K vs -735K prior
API data released late yesterday:
- Crude Oil -3608K
- Cushing +917K
- Gasoline +5565K
- Distillates -3006K
This is a bullish report and Oil challenged to top end of the recent range. It moved quickly up to $62.80s, sending USD/CAD lower with it. So, this pair continues the bearish trend and we will try to sell retraces higher if we see any soon.
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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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