Ichimoku analysis (hourly Chart)
Tenken-Sen- 1.25780
Kijun-Sen- 1.26032
USDCAD continues to trade lower for the past 10 months on broad-based US dollar selling. The upbeat market sentiment and surge in crude oil price are supporting the Canadian dollar. The Bank of Canada governor Macklem said that country's current economic condition is far from the 2017 and 2018 levels. The central bank is planning to provide new targeted programs to counter the COVID pandemic. The pair declined despite surging US bond yield. USDCAD hits an intraday low of 1.27398 and currently trading around 1.27304.
WTI crude oil declined more than $1 after the inventory build-up. According to the American Petroleum Institute (API), crude inventory rose to 1.026 million compared to a forecast of -5.19 million barrels. The overall trend is bullish as long as support $58.60 holds.
Technically, the pair faces near-term resistance at 1.26650. Any indicative break above will take till 1.2700/1.2765/1.2800/1.2835. The significant support is around 1.2560; an indicative violation below will take to the 1.2520/1.2480.
Indicator (Hourly chart)
CAM indicator – Bullish
Directional movement index – Bearish
It is good to sell on rallies around 1.2618-20 with SL around 1.2660 for a TP of 1.2520
