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FxWirePro: USDCAD Daily Outlook
Ichimoku analysis (Hourly Chart)
USDCAD has formed almost a double bottom around 1.2630 and shown a massive jump of more than 150 pips. The broad-based US dollar strength and weakness in WTI crude is putting pressure on the Canadian dollar. Markets eye BOC monetary policy meeting tomorrow for further direction. USDCAD hits an intraday high of 1.27959 and currently trading around 1.27869.
WTI crude oil lost more than $2 after hitting a fresh 10-month high of $53.89 as Biden may cancel the Keystone XL pipeline. Any violation below $51.75 confirms bearish continuation, a dip till $50 likely.
Technically, the pair faces near term resistance at 1.2800. Any indicative break above will take till 1.2835/1.2865/1.2900. The near term support is around 1.2750; an indicative violation below will take to the next level till 1.2700/1.2660/1.2630.
It is a good buy on dips around 1.2750 with SL around 1.2700 for TP of 1.2865.