FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (1 Hour Chart)

Tenken-Sen- 1.26552

Kijun-Sen- 1.26801

USDCAD recovered more than 50 pips from a low of 1.26223 despite surging crude oil prices. The broad-based US dollar buying due to the jump in US 10 bond yield is supporting the pair at lower levels.DXY breaks significant resistance 92.20; a jump till 92.85 is possible. According to Statistics Canada, the Canadian economy has posted a trade surplus of $1.4 billion, the largest since July 2014 as exports strengthened.   USDCAD hits an intraday high of 1.27003 and currently trading around 1.26870.

 WTI crude oil hits two years high at $67.94 after the Saudi Arabian main crude site was attacked by a drone. The overall trend is bullish as long as support $62.50 holds.

Technically, the pair faces near-term resistance at 1.2750. Any indicative break above will take till 1.2800/1.2835. The significant support is around 1.2660; an indicative violation below will take to the 1.2620/1.2570.

Indicator (1 Hour chart)

CAM indicator – Bullish

Directional movement index –Bullish

It is good to buy on dips around 1.2660 with SL around 1.2620 for a TP of 1.2800.