FxWirePro: USDCAD Daily Outlook
Ichimoku analysis (1-Hour Chart)
Tenken-Sen- 1.27902
Kijun-Sen- 1.27793
USDCAD has taken support near 200-H EMA and surged more than 50 pips on broad-based US dollar buying. US ISM manufacturing PMI came at 58.70 compared to an estimate of 60. While Canadian PMI declined to six months low at 54.4 in Jan vs estimate of 57.90. DXY's next leg of bullishness will start if it breaks 91 levels. USDCAD hits an intraday high of 1.27904 and currently trading around 1.28240.
WTI crude oil is consolidating between$51.46 and $53.55 for the past two weeks. The overall trend is bullish as long as support $51.50 holds.
Technically, the pair faces near term resistance at 1.2835. Any indicative break above will take till 1.28650/1.2900/1.2965. The near term support is around 1.2750; an indicative violation below will take to the 1.2680/1.2600.
It is good to sell on rallies around 1.27825-85 with SL around 1.2850 for a TP of 1.2680.
