Key Points
- The US Dollar is in an uptrend above the 1.2750 support against the Canadian Dollar.
- There is a crucial ascending channel forming with current support at 1.2770 on the hourly chart of USDCAD.
- Recently in Canada, the Wholesale Sales report for Sep 2017 was released by the Statistics Canada.
- The outcome was below the market forecast of +0.3%, as there was a decline of 1.2% in Sales (MoM).
USDCAD Technical Analysis
The US Dollar recently traded close to the 1.2840 level against the Canadian Dollar where sellers appeared. The USDCAD pair moved down and traded below the 1.2800 support area and the 21 hourly simple moving average.
The pair traded as low as 1.2749 and recently corrected towards the 38.2% Fib retracement level of the last decline from the 1.2837 high to 1.2749 low.
It seems like there is a crucial ascending channel forming with current support at 1.2770 on the hourly chart. The pair might continue to move higher as long as it is above the channel support and 1.2750.
Canada’s Wholesale Sales
Recently Canada, the Wholesale Sales report for Sep 2017 was released by the Statistics Canada. The market looking for an increase of 0.3% in sales in Sep 2017 compared with the previous month.
The actual result was below the market forecast of +0.3%, as there was a decline of 1.2% in Sales. This was also lower than the last revised reading of +0.4%. The report stated that:
Following two months of increases, wholesale sales declined 1.2% to $62.0 billion in September, the second decline of 2017. Decreases were recorded in five of seven subsectors, led by the personal and household goods and the food, beverage and tobacco subsectors.
Overall, the USDCAD pair remains in an uptrend as long as there is no close below the 1.2750 support area.
