FxWirePro: USDCAD trades below 200-4H EMA, dip till 1.3100 likely

Ichimoku analysis (4-hour Chart)

Tenken-Sen- 1.32849

Kijun-Sen- 1.32849

USDCAD is trading weak for the past one week and hits 17- day low on strong oil prices. The BOC Governor Tiff Macklem said that there is a chance of negative interest rates if the coronavirus crisis worsens further in the near term. It hits an intraday low of 1.32196 and currently trading around 1.32277.

WTI crude oil is trading higher and recovered more than $3.5 on output shutdown in the Gulf of Mexico and closure of Norway's largest oil field Johan Sverdrup due to union strike. Any violation above $41.50 targets $43/$43.75.

Technically, the pair faces near term resistance at 1.3350. Any violation above targets 1.3380/1.3435/1.3500. The near term support is around 1.3200, an indicative break below will take to the next level till 1.3135/1.30440.

It is good to sell on rallies around 1.3258-60 with SL around 1.3300 for the TP of 1.3100.