FxWirePro: USDCAD Daily Outlook
Ichimoku analysis (4-hour chart)
USDCAD recovered more than 100 pips from a low of 1.33317 on weak crude oil prices. The pair was one of the worst performers in the past 1-month and lost more than 350 pips on broad-based US dollar selling. The US GDP declined to -32.9% annualized slightly better than the estimate and continuing claims rose above 17 million. It is currently trading around 1.34412.
WTI Crude oil declined sharply till $38.71 on US-China trade war escalation. Any break below $38.50 confirms bearish continuation and is currently trading around $39.87.
Technically, the pair is facing strong support at 1.3380. A break below targets 1.3330/1.33150. The near term resistance is at 1.3450, an indicative break beyond will take the pair to the next level till 1.3500/1.3540.
It is good to buy on dips around 1.3428-30 with SL around 1.3380 for the TP of 1.3540.