Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.27264
Kijun-Sen- 1.27132
The pair regained after five days of a bearish trend. The main reasons for the jump are
Upbeat US CPI data. US CPI surged 6.8% in November, the fastest level since 1982. This might increase the chance of a rate hike by Fed before anticipated.
Policy divergence between the US Fed and Bank of Canada is supporting pair at lower levels.
It hits an intraday high of 1.27476 and is currently trading around 1.27448.
Crude oil price-
WTI crude oil is trading higher on easing concerns of the omicron Corona variant. Any breach above 73.50 confirms further bullishness.
Intraday Trend –Bullish
The near-term resistance is around 1.2750, a breach above targets 1.2800/1.2850/1.2900.On the lower side, immediate support stands around 1.2680; violation below will take the pair down to the next level 1.2650/1.2600/1.2560.
It is good to buy on dips around 1.2718-20 with SL around 1.2680 for a TP of 1.2850.
