Ichimoku analysis (Daily Chart)
Tenken-Sen- 1.27300
Kijun-Sen- 1.27909
USDCAD has formed almost a double bottom around 1.2630 and shown a massive recovery despite weak US retail sales. It came at -1.4%in Dec compared to the forecast of -0.1%. US Empire state manufacturing index declined to 3.5 in Jan vs 6 expected. The rising yield and surge in coronavirus cases. Is supporting the US dollar at lower levels. USDCAD hits an intraday high of 1.27326 and currently trading around 1.27266.
WTI crude oil lost more than $1 after hitting a fresh 10-month high of $53.89 on surging coronavirus cases. Any violation above $54 confirms bullish continuation, a jump till $55/$57 likely.
Technically, the pair faces near term resistance at 1.2780. Any indicative break above will take till 1.2835/1.2865/1.2900. The near term support is around 1.2700; an indicative violation below will take to the next level till 1.2660/1.2630.
It is a good buy on dips around 1.2700 with SL around 1.2660 for TP of 1.2835.
