FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.26949

Kijun-Sen- 1.27218

USDCAD has halted its one week of the bearish trend and shown a minor recovery. The upbeat market sentiment and surging crude oil prices are supporting the Canadian dollar. The US dollar index showed a minor recovery despite dismal US jobless claims data.  The number of people who have filed for unemployment benefits rose to 793000 compared to a forecast of 76000. Continuing claims benefits declined by 145000 to 4.54 million. USDCAD hits an intraday high of 1.27358 and currently trading around 1.26986.

WTI crude oil lost more than $1 amid positive US crude inventories. . According to Energy Information Administration (EIA), US inventory has declined by 6.6 million barrels for the week ended Feb 5th compared to an estimate of -0.9M EIA raised price forecasts for 2021and 2022. The overall trend is bullish as long as support $57.20 holds.

Technically, the pair faces near term resistance at 1.2750. Any indicative break above will take till 1.280001.2835. The near term support is around 1.2680; an indicative violation below will take to the 1.2620/1.26000.

It is good to buy on dips around 1.2728-30 with SL around 1.2680 for a TP of 1.2835