FxWirePro- USDCAD Daily Outlook

Bullish Divergence (Daily Chart)

Ichimoku analysis (Daily Chart)

Tenken-Sen- 1.25327

Kijun-Sen- 1.25641

USDCAD has taken support near trend line and shown a minor recovery till 1.25200 despite better than expected Canadian retail sales. It has declined by 1.1% in January compared to a forecast of -2.8%. The US 10-year yield jumped sharply from a minor low of 1.67% is supporting the US dollar at lower levels. DXY is trading higher and holding above 92 levels. A jump till 92.60 likely.

 WTI crude oil declined sharply nearly 15% on strong US dollar and vaccine rollout delayed. The overall trend is bearish as long as resistance $67 holds.

Technically, the pair faces near-term resistance at 1.2530. Any indicative break above will take till 1.2570/1.2625. The significant support is around 1.2460; an indicative violation below will take to the 1.2430/1.2360.

Indicator (1 Hour chart)

CAM indicator – Bullish

Directional movement index –Bearish

It is good to buy on dips around 1.2518-20 with SL around 1.24600 for a TP of 1.2660.