Ichimoku analysis (4-Hour Chart)
Tenken-Sen- 1.25076
Kijun-Sen- 1.25237
USDCAD is consolidating in a narrow range between 1.2470 and 1.25594 for the past four days. The broad-based US dollar selling is putting pressure on this pair at higher levels. The surge in the number of coronavirus in Canada after the Easter holidays is preventing USDCAD from further selling. Markets eye Bank of Canada monetary policy meeting tomorrow for further direction. The US dollar index is trading weak for third consecutive days and trading well below 200- day MA. USDCAD hits an intraday high of 1.2540 and is currently trading around 1.25226.
WTI crude oil is trading higher despite the rise in coronavirus cases across the globe. The short-term trend is bullish as long as support $60.50 holds.
Technically, the pair faces near-term resistance at 1.2570. Any indicative break above will take till 1.2600/1.2660. The significant support is around 1.2460; an indicative violation below will take to the 1.2425/1.2400.
Indicator (4-hour chart)
CAM indicator – Slightly bullish
Directional movement index –Bullish
It is good to buy on dips around 1.25280-90 with SL around 1.2470 for a TP of 1.2660.
