FxWirePro: USDCAD struggles to close above 200-day MA, good to sell on rallies
Ichimoku Analysis (Daily Chart)
USDCAD is trading weak for the past one week on rising crude prices. Markets eye the US fed monetary policy and Canadian CPi for further direction. The central bank is expected to keep rates unchanged, investors await economic projections. The overall trend is still on the downside as long as resistance 1.2810 holds.
WTI crude recovered more than $7 on tight supplies and a jump in COVD vaccination. Any break below $65 targets $60.
On the flip side, immediate support stands at 1.2520, and an indicative break below that level will drag the pair down till 1.2465/1.2430.
The pair is facing strong resistance at 1.2610 (200-day EMA), violation above will take till 1.2660/1.2700/1.27415.
Indicator (Daily chart)
Directional movement index –Neutral
It is good to sell on rallies around 1.2605-08 with SL around 1.2660 for the TP of 1.2465.