The Retrace Up in USD/CAD Ends, US Factory Orders Turn Positive Again - Forex News by FX Leaders
The retrace higher seems complete in USD/CAD now

The Retrace Up in USD/CAD Ends, US Factory Orders Turn Positive Again

Posted Tuesday, May 4, 2021 by
Skerdian Meta • 1 min read

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

factory orders
  • March factory orders +1.1% vs +1.3% expected
  • February orders were -0.8%
  • Core orders excluding transport +1.9% vs +1.8% expected
  • Prior core orders were -0.6%
Revisions to durable goods:
  • 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
Overall, these numbers are decent. Core orders were revised higher and the shipments number will be a boost to Q1 GDP.
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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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