Ichimoku Analysis (Daily Chart)
Tenken-Sen- 1.25762
Kijun-Sen- 1.25476
USDCAD has shown a nice recovery of more than 100 pips. The pair is trading weak despite the weak US dollar. The weak Canadian economic data and crude oil price sell-off are putting pressure n the Canadian dollar. The Canadian economy contracted in May by 0.3% compared to 0.5% the previous month. It hits an intraday high of 1.25146 and is currently trading around 1.25105.
WTI crude lost more than $4 on slow economic recovery. The overall trend is bullish as long as support $65 holds.
On the flip side, immediate support stands at 1.2480, and an indicative break below that level will drag the pair down till 1.2435/1.2400.
The pair is facing strong resistance at 1.2530 (200-day EMA), violation above will take till 1.2600/1.2660/1.2700/1.27415.
Indicator (Daily chart)
CAM indicator-Neutral
Directional movement index –Neutral
It is good to buy on dips around 1.2478-80 with SL around 1.2435 for the TP of 1.2600.
