USD/CAD has been really bearish since last March when the USD turned down and the increase in Oil prices since April last year has helped the cause for sellers as well. As a result, this pair has lost around 24 cents from top to bottom and in the last two weeks the decline picked up pace further, sending this pair 400 pips lower.

In the last few sessions we have seen this pair retrace higher, but it has formed a bearish reversing pattern on the H4 chart now. The previous H4 candlestick closed as an upside-down hammer, which is a bearish reversing signal, so we decided to go shorton USD/CAD . The US durable goods orders report was released a while ago, showing a reversal from February’s decline.

March 2021 US factory orders

• US durable goods orders +0.8% vs +0.5% expected
• Prelim February durable goods orders +3.4%
• Prior durable goods orders +1.2%
• Durables ex transportation +1.9% vs +1.6% prelim
• Capital goods orders non-defense ex-air +1.2% vs +0.9% expected
• Prelim capital goods orders non-defense ex-air +0.9%
• Capital goods shipments non-defense ex-air +1.6% vs +1.3% prelim