Ichimoku analysis (4-Hour chart)
Tenken-Sen- 1.790
Kijun-Sen- 1.23790
Previous week low – 1.2250
June month high- 1.2480
USDCAD is trading weak and broken minor trend line support at 1.23660. The upbeat global market sentiment and surge in Crude oil prices are supporting the Canadian dollar. The IHS Markit PMI data hits a 4-month low at 56.5 in Jun vs a forecast of 57.4. Markets eye Bank of Canada business outlook survey today for further direction. The pair is declining despite WTI crude oil trade s near a new 52- week high. USDCAD hits an intraday high of 1.23547 and is currently trading around 1.23439.
The WTI crude oil price hits a fresh 52-week high as OPEC has an upgrade demand outlook. Short term trend is bullish as long as support $71.50 holds.
Trend –Bearish
The near-term resistance is around 1.2365, a breach above targets 1.23950/1.2435/1.24800. On the lower side, immediate support stands around 1.2300; violation below will take the pair down to the next level 1.2189.
It is good to sell on rallies around 1.2358-60 with SL around 1.2400 for TP of 1.2250.
