Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.26469
Kijun-Sen- 1.27057
The pair has shown a minor pullback after forming a temporary bottom around 1.25785. USDCAD was one of the best performers in the month of Aug and surged more than 3.5%. The reasons for the jump are
Fed Chairman may signal to taper of the bond purchase at the Jackson Hole symposium.
The spread of delta variant Coronavirus has increased demand for safe-haven assets.
USDCAD declined slightly after hitting a high of 1.27081. The overall trend remains bullish as long as support 1.2430 holds.
Intraday Trend –Bullish
The near-term resistance is around 1.2720 (38.2% fib), a breach above targets 1.2760/1.28090. On the lower side, immediate support stands around 1.25980; violation below will take the pair down to the next level 1.25665 (200-4H EMA)/1.2500.
It is good to buy on dips around 1.26000 with SL around 1.25480 for a TP of 1.2760.
