Ichimoku Analysis (4-hour chart)
Tenken-Sen- 1.40440
Kijun-Sen- 1.41215
USDCAD recovered sharply from a 1-week low of 1.39449 made yesterday. The jump was mainly due to a slight recovery in the US dollar index and weak crude oil price. DXY formed a minor bottom around 99.77 and jumped more than 50 pips till 100.32.Any break above 100.50 targets 101/101.65.
WTI crude oil is trading weak on account of surge in inventory. According to API, US crude inventory rose by 11.9 million barrels per day, while gasoline up by 9.5 million barrels. It hits low of $23.52 and is currently trading around $24.42.
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 1.4090 and indicative break above targets 1.4125/1.4160.
It is good to sell on rallies around 1.4028-30 with SL around 1.4080 for the TP of 1.3920.
