FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.26082

Kijun-Sen- 1.26087

USDCAD is trading higher and holding above 1.26000 despite strong Canadian economic data. Canada's Ivey PMI surged to a 10-year high at 72.9 in Mar compared to a forecast of 62. The spread of the third wave of corona in all major countries will affect the global economy and it will decrease demand for the commodity. The commodity currencies continue to trade weak due to the COVID-19 pandemic. Markets eye US Initial jobless claims.

 WTI crude oil recovered slightly after US EIA crude inventory data.  The inventories declined by 3.5 million barrels to a forecast of -2.0M.  The short-term trend is bearish as long as resistance $62 holds.

Technically, the pair faces near-term resistance at 1.2660. Any indicative break above will take till 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 –Bullish  

It is good to buy on dips around 1.2580 with SL around 1.2530 for a TP of 1.2700.