FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (1-hour chart)

Tenken-Sen- 1.33797

Kijun-Sen- 1.34061

USDCAD is trading in a narrow range between 1.3333 and 1.34511 for the past one month. The Canadian dollar is gaining against for the fourth consecutive month. The positive Canada economic data and surging crude oil is a major reason for bullishness. The US ISM manufacturing index came at 54.2% in Jul compared to a forecast of 53.6. Markets US and Canadian jobs data on Friday for further direction. It hits an intraday low of 1.33610 and currently trading around 1.33658.

WTI Crude oil took support near 50- day MA and shown a recovery of more than $2.5. Any break below $38.50 confirms bearish continuation and is currently trading around $39.87.

Technically, the pair is facing strong support at 1.3350. A break below targets 1.33150. Significant selling only below 1.33150. A dip till 1.3260/1.3200 possible. The near term resistance is at 1.3460, an indicative break beyond will take the pair to the next level till 1.3500/1.3540.

It is good to sell on rallies around 1.34025-50 with SL around 1.3460 for the TP of 1.3320.