FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.27126

Kijun-Sen- 1.27134

USDCAD continues to trade lower after a minor jump till 1.27650. The broad-based weakness in the US dollar and surge in oil price is supporting the Canadian dollar at a lower price. The upbeat market sentiment and due to coronavirus vaccine progress and hopes for more U.S stimulus is supporting the Canadian dollar. The US dollar index lost more than 50 pips from a minor top at 90.74. USDCAD hits an intraday low of 1.26601 and currently trading around 1.26628.

WTI crude oil hits fresh year high on stimulus hopes might increase demand higher and tighter supplies. The overall trend is bullish as long as support $57.40 holds.

Technically, the pair faces near term resistance at 1.2765. Any indicative break above will take till 1.2800/1.2835. The near term support is around 1.2660; an indicative violation below will take to the 1.2620/1.26000.

It is good to sell on rallies around 1.2700025 with SL around 1.2750 for a TP of 1.2600