Ichimoku Analysis (4-Hour chart)
Tenken-Sen- 1.4060
Kijun-Sen- 1.40075
USDCAD has shown a massive recovery of more than 200 pips from a low of 1.39011. The surge was mainly due to broad-based US dollar and weak crude oil prices. The COVID-19 is a major threat to the global economy as recession will decrease the demand for crude oil prices.
Crude oil declined despite inventory draw and EIA has reported a crude inventory decreased by 700000 barrels for the week to May 8. Any violation above $28 confirms bullish continuation.
Technically, major intraday support stands at 1.4060, and any violation below targets 1.4000/1.3900. The near term resistance is at 1.4125, an indicative break above will take the pair to next level till
1.4175/1.42650. Trend continuation can happen only above 1.42650.
It is good to buy on dips around 1.4085-88 with SL around 1.4050 for the TP of 1.420/1.4258.
