FxWirePro- USDCAD Daily Outlook

 Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.25190

Kijun-Sen- 1.25190   

USDCAD continues to trade lower and settled below the 1.24000 level on broad-based US dollar selling. The overall bullish trend in the commodity market especially in copper which hits highest since 2011.it is pushing the commodity currencies like Canadian and Australian dollar. The US dollar index is struggling to close above 91 levels. Any break above 91.25 confirms intraday bullishness. Markets eye BOC Governor Macklem's speech for further direction. USDCAD hits an intraday low of 1.23886 and is currently trading around 1.24806.

 WTI crude oil is trading slightly higher on US dollar weakness. But the huge spread of the second wave of coronavirus across countries like India might cap demand for the short term. The short-term trend is bullish as long as support $60.50 holds.

Technically, the pair faces near-term resistance at 1.2460. Any indicative break above will take till 1.2500/1.2570. Major trend continuation only above 1.2660. The significant support is around 1.23600; an indicative violation below will take to the 1.2325/1.2300.

Indicator (Daily chart)

CAM indicator – Neutral

Directional movement index –Neutral 

It is good to sell on rallies around 1.2458-60 with SL around 1.2500 for a TP of 1.2300.