FxWirePro- USDCAD Daily Outlook
Ichimoku analysis (4-Hour Chart)
Tenken-Sen- 1.26183
Kijun-Sen- 1.25851
USDCAD continues to trade lower after the Bank of Canada monetary policy. The central has kept its interest rates unchanged at 0.25% and tapers bond-buying by $1B/week to $3B/ week. It has upgraded its economic outlook to 6.5% in 2021 from January forecasts of 4.0%. The rates are also expected to rise much sooner than the previous forecast of 2023. The US dollar index is holding above 91 levels. The significant buying can happen only if it breaks 91.70.USDCAD hits an intraday low of 1.24905 and is currently trading around 1.25015.
WTI crude oil is trading lower due to 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. Major trend continuation only above 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 – Bearish
Directional movement index –Bearish
It is good to sell on rallies around 1.2525-280 with SL around 1.2570 for a TP of 1.2425.
