Ichimoku analysis (4-Hour Chart)
Tenken-Sen- 1.23073
Kijun-Sen- 1.22960
USDCAD has formed a double bottom around 1.2260 and shown a minor recovery from that level. The pair was one of the worst performers and lost more than 14% on broad-based US dollar selling and upbeat market sentiment. The Canadian manufacturing PMI declined to 57.2 in Apr from 58.50. The Fed chairman Powell said that the economic outlook is "clearly brightened" but recovery is uneven in the low-income group. The US dollar index surged after Fed Chairman's optimistic comments. Any violation above 91.50 confirms minor bullishness. USDCAD hits an intraday high of 1.23334 and is currently trading around 1.23300.
WTI crude oil is trading slightly higher on the global economy positive outlook. The upside is limited due to the extension of lockdown in major countries. The short-term trend is bullish as long as support $60.50 holds.
Technically, the pair faces near-term resistance at 1.23425. Any indicative break above will take till 1.2370/1.2425/1.2490. Major trend continuation only above 1.2660. The significant support is around 1.2350; indicative violation below will take to the 1.2260/1.2200.
Indicator (4-hour chart)
CAM indicator – Bearish
D4irectional movement index –Bearish
It is good to buy on dips around 1.2320 with SL around 1.2260 for a TP of 1.2470.
