FxWirePro: AUD/CAD struggles to extend previous session's gains, retrace below 5-DMA to see more weakness
FxWirePro: Buy USDCAD on dips
Ichimoku analysis (4-hour Chart)
USDCAD is consolidating in a narrow range between 1.34182 and 1.33512 for the past four days. The rise in the number of COVID-19 cases in the UK and Europe. The total number of new coronavirus cases in the UK rose by 7143 yesterday, a jump of 2217 Vs last week. The Pandemic virus is putting pressure on the Canadian economy as it is export oriented. It hits an intraday high of 1.34205 and currently trading around 1.34022.
Technically, WTI crude oil is trading well below trend line support and 100- 4H MA. It confirms further weakness and a dip till $37.90/$36 likely.
Technically, the pair faces near term resistance at 1.3420. Any violation above targets 1.3475/1.3500. The near term support is around 1.3350, an indicative break below will take to the next level till 1.3320/1.3280/1.3235.
It is good to buy on dips around 1.3380 with SL around 1.3340 for the TP of 1.3475/1.34500.