Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.36718
Kijun-Sen- 1.36008
USDCAD recovered more than 70 pips on a slight jump in the US dollar. The risk-off sentiment due to the surge in coronavirus cases in the U.S is putting pressure on the Canadian dollar. It hits an intraday high of 1.36990 and is currently trading around 1.36941.
WTI Crude oil is struggling to break above $40 on partial lockdown in most places in the U.S. This might reduce demand for crude oil further. The trade war between the US and China also preventing oil prices from upside. Any break above $41.62 confirms further bullishness.
Technically, significant support stands at 1.3630, and any violation below targets 1.3580/1.35400/1.34808/1.3450 (61.8% fib). The near term resistance is at 1.3720 (trend line resistance), an indicative break beyond will take the pair to the next level till 1.3780/1.3830.
It is good to buy on dips around 1.3680-825 with SL around 1.3630 for the TP of 1.3800.
