FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (Daily Chart)

Tenken-Sen- 1.28580

Kijun-Sen- 1.29427

USDCAD has jumped more than 80 pips from a low of 1.27070 on short covering. The jump in oil prices is supporting the Canadian dollar at higher levels. The upbeat global markets due to COVID-19 have dragged the US dollar index below 91 levels. US Core PPI edged higher by 0.1% compared to 0.2%. While University of Michigan sentiment came at 81.4 vs forecast of 76.1. DXY is holding slightly above 91 levels, any violation above 91.20 targets 91.50. Loonie hits an intraday low of 1.27926 and currently trading around 1.27700.

WTI crude oil has broken the previous week's resistance of $46.66l. A jump till $48/$50 likely.

Technically, the pair faces near term resistance at 1.2830. Any indicative break above targets 1.2865/1.2900/1.2940/1.300. The near term support is around 1.2760; an indicative break below will take to the next level till 1.2725/1.2700.

It is good to buy on dips around 1.2758-60 with SL around 1.2720 for the TP of 1.2838.