FxWirePro- USDCAD Daily Outlook

Bullish Divergence (Daily Chart)

Ichimoku analysis (1 Hour Chart)

Tenken-Sen- 1.24670

Kijun-Sen- 1.24612

USDCAD recovered slightly after hitting a low of 1.24338. The Canadian CPI came in at 0.5% in Feb slightly below forecast 0.7%. The central bank is expected to keep interest rates on hold until late 2022. Markets eye Central bank's new forecast for inflation, growth, and employment and Chairman Powell press conference for further direction. The surge in crude oil prices and upbeat market sentiment is supporting the Canadian dollar. DXY is trading higher, further bullishness only above 92 levels.

 WTI crude oil declined slightly after crude inventory data. It came at 2396k vs an estimate of 2700k. The intraday trend is bullish as long as support $63 holds.

Technically, the pair faces near-term resistance at 1.2520. Any indicative break above will take till 1.2570/1.2625. The significant support is around 1.2430; an indicative violation below will take to the 1.2380/1.2360.

Indicator (1 Hour chart)

CAM indicator – Bullish

Directional movement index –Bullish

It is good to buy on dips around 1.2458-60 with SL around 1.2430 for a TP of 1.2600.