FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.2575

Kijun-Sen- 1.2535

USDCAD has formed a double top near 1.2630 and started to decline from that level. The pair is trading slightly weak despite broad-based US dollar buying. The slight recovery in crude oil prices is supporting the Canadian dollar. The strong US bond yield and upbeat US economic data are preventing the pair from further decline. It has formed a minor bottom around 1.23652 and surged more than 250 pips. DXY is holding well above the 200-day EMA level. It confirms minor bullishness, a jump till 93.25/93.690 likely.

 WTI crude oil jumps more than 2% from the intraday low of $59.40 as container ship blocking in the Suez canal might disrupt oil supply. The short-term trend is bearish as long as resistance $62 holds.

Technically, the pair faces near-term resistance at 1.2630. Any indicative break above will take till 1.2660/1.2700/1.2745. The significant support is around 1.2570; an indicative violation below will take to the 1.2530/1.2500/1.2460.

Indicator (4 Hour chart)

CAM indicator – Neutral

Directional movement index –Neutral

It is good to buy above 1.2630 with SL around 1.2590 for a TP of 1.2745.