FxWirePro: USDCAD trades weak after Fed injects $2.3 trillion, good to sell on rallies

Ichimoku Analysis (4-hour chart)

Tenken-Sen- 1.40470

Kijun-Sen- 1.40345

USDCAD declined once again after hitting a high of 1.40778 at the time of writing. The decline was mainly due to broad-based US dollar selling and surge in crude oil prices. Canadian jobs data came at -1010k jobs vs -500k in March and the unemployment rate rose from 5.6% to 7.8%. 

US Fed has injected $2.3 trillion in additional loans to support the U.S economy from coronavirus. DXY has broken 99.77 low made on Apr 7th, 2020 and is currently trading around 99.61.

WTI crude oil jumped nearly $4 from low of $23.52 on hopes of supply cut from OPEC. Markets are expecting a cut of 10 to 15 million barrels per day. US EIA showed that crude stocks rose by 15.2 million barrels.

On the flip side, immediate support is at 1.3920 and the violation below will drag the pair down till 1.3890/1.3440.

The near-term resistance is around 1.4060, an indicative break above targets 1.4090/1.4125/1.4160.

It is good to sell on rallies around 1.4020-25 with SL around 1.4070 for the TP of 1.3860.