Ichimoku analysis (1 Hour Chart)
Tenken-Sen- 1.20575
Kijun-Sen- 1.20538
USDCAD is trading flat after a major sell-off from a year high of 1.46674. The bullish commodity trend and upbeat market sentiment are supporting the Canadian dollar. The pair was trading weak for the past six months and lost more than 10%. The upbeat Canadian retail sales and better than expected CPI are also dragging the pair down. USDCAD hits an intraday high of 1.20771 and is currently trading around 1.20546.
WTI crude oil jumped more than 90% from the previous year's low of $17.47 on a surge in demand due to vaccine rollout. The short-term trend is bullish as long as support $57.50 holds.
Technically, the pair faces near-term resistance at 1.20830. Any indicative break above will take till 1.2150/1.21850/1.2200/1.2280. Minor trend continuation only above 1.2205. The significant support is around 1.2000. Any violation below will take to the next level to 1.1970/1.1950.
Indicator (4-hour chart)
CAM indicator – Bullish
Directional movement index –Bullish
It is good to buy above 1.2080 with SL around 1.2040 for a TP of 1.2180.
