FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (1-Hour Chart)

Tenken-Sen- 1.27284

Kijun-Sen- 1.27853

USDCAD has shown a massive jump of more than 200 pips on broad based dollar buying. The huge volatility in the stock market due to risk aversion is putting pressure on the Canadian Dollar at a higher level. The Fed has kept its rates unchanged and said that economic growth will depend on the further spread of the virus and progress of vaccine. DXY's next leg of bullishness will start if it breaks 91 levels. USDCAD hits an intraday high of 1.28609 and currently trading around 1.28393.

WTI crude oil jumped more than $1.5 after a large inventory draw. US crude oil stocks declined by nearly 10 million barrels, compared to an estimate of  1.6M. The overall trend is bullish as long as support $51.50 holds.

Technically, the pair faces near term resistance at 1.2865. Any indicative break above will take till 1.2900/1.2965. The near term support is around 1.2800 an indicative violation below will take to the 1.2760/1.2700.

It is a good sell on rallies around 1.2818-20 with SL around 1.2770 for a TP of 1.2955.