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FxWirePro: USDCAD declines on surging oil prices, good to sell on rallies

Ichimoku Analysis (Daily chart) Tenken-Sen- 1.40366 Kijun-Sen- 1.40577 USDCAD has lost more than 100 pips from a high of 1.4140 made yesterday. The decline was mainly due to strong crude oil prices. Oil rose more than 10…

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FxWirePro: USDCAD declines on surging oil prices, good to sell on rallies
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Ichimoku Analysis (Daily chart)

 

Tenken-Sen- 1.40366

 

Kijun-Sen- 1.40577

 

USDCAD has lost more than 100 pips from a high of 1.4140 made yesterday. The decline was mainly due to strong crude oil prices. Oil rose more than 10% as countries relaxed lockdown and demand are expected to pick up in the coming months. WTI crude holding above $28 and a jump till $30 likely.

 

Markets eye US Baker Hughes weekly rig data which is to be released today for further direction.

 

Technically, significant intraday support stands at 1.4000, and any violation below targets 1.3900. The near term resistance is at 1.4080, an indicative break above will take the pair to next level till

1.4140/1.4175/1.42650. Trend continuation can happen only above 1.42650.

 

It is good to sell on rallies around 1.40580-60 with SL around 1.4010 for the TP of 1.3955.

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