FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.26557

Kijun-Sen- 1.2693

USDCAD continues to trade lower and hits fresh multi-year lows on broad-based US dollar selling. DXY lost more than 80 pips from minor top 90.95 as stimulus hopes have increased demand for riskier assets like stocks. The number of people who have filed for unemployment benefits in the US has declined to 900K compared to a forecast of 900K. USDCAD hits an intraday low of 1.25892 and currently trading around 1.26150.

WTI crude oil has taken support near 200-H MA and shown a nice recovery on upbeat global sentiment. Any violation above $54 confirms bullish continuation, a jump till $56 likely.

Technically, the pair faces near term resistance at 1.26520. Any indicative break above will take till 1.2720/1.2765. The near term support is around 1.2570 an indicative violation below will take to the next level till 1.2520/1.2500.

It is a good buy on dips around 1.2600 with SL around 1.2570 for a TP of 1.2700/1.2750.