FxWirePro- USDCAD Daily Outlook
Ichimoku analysis (4-Hour Chart)
Tenken-Sen- 1.25587
Kijun-Sen- 1.25878
USDCAD is trading slightly lower after pullback till 1.26474. The surge in US bond yield is supporting the US dollar at lower levels. The US 10- year bond yield hits a fresh year high at 1.774% and shown a minor profit booking from that level. The better than economic data in the US also preventing the pair from major sell-off. US Nonfarm payroll increased by 916K in Mar compared to a forecast of 652K. The unemployment rate came unchanged at 6.0% vs an estimate of 6.0%. Average hourly earnings showed a decline of 0.1% vs an estimate of 0.1%. DXY halted its uptrend and lost more than 50 pips. Trend continuation only if it breaks 93.60.
WTI crude oil declined more than $1.50 after OPEC decided to increase output gradually by 2 million barrels per day. the short-term trend is bearish as long as resistance $62 holds.
Technically, the pair faces near-term resistance at 1.26050. Any indicative break above will take till 1.2660/1.2700/1.2745. The significant support is around 1.2530; an indicative violation below will take to the 1.2500/1.2460.
Indicator (Hourly chart)
CAM indicator – Neutral
Directional movement index –Neutral
It is good to buy on dips around 1.25300 with SL around 1.2500 for a TP of 1.2660.
