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USDCAD : Declining After Upbeat Canadian Wholesale Data But Still Seems Supported

Canadian Dollar is today strengthening against the US dollar after the upbeat wholesale trade data. According to Statistics Canada, wholesale sales rose 2.2% to $52.6 billion in May, a second consecutive increases and beating the economists forecast of .7% increase. Although the increase in sales were recorded in four subsectors, but most of the gain came from the motor vehicle and parts sub sector.

(USDCAD : 4 Hour Chart)

On the 4 hour chart, USDCAD declined but seems like 50 day SMA provided support to the pair. Also there is a falling resistance trend line which has prevented the pair from rising above it couple of times. The direction of 50 day SMA is showing that the pair should continue the uptrend and rise breaking the falling resistance trend line but the support at 1.0628 and resistance trend line together makes a descending triangle trend which shows a bearish trend on the pair. If the pair breaks below the support at 1.0707, it may decline to 1.0628. However if it fails to do so it might reverse the trend by rising and breaking the falling resistance trend line.