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FxWirePro- USDCAD trades above 1.2600 levels, good buy on dips

 

Ichimoku analysis (Hourly chart)

 

 Tenken-Sen- 1.26179

 

Kijun-Sen- 1.26235

 

The pair was one of the best performers in the past two days and surged more than 300 pips. The reasons for the jump are

 

  • Strong US dollar

 

  • Weakness in all major commodities as delta variant spread across the globe.

 

  • WTI Crude oil price hits three week low.

 

 USDCAD has broken significant resistance 1.28075 high made on Jul 19th, 2021. It has surged like a rocket till 1.29272 level. The overall trend remains bullish as long as support 1.26000 holds.

 

Trend –Bullish

The near-term resistance is around 1.2930, a breach above targets 1.3000/1.3040. On the lower side, immediate support stands around 1.2850; violation below will take the pair down to the next level 1.2800/1.2765.

 

It is good to buy on dips around 1.2850 with SL around 1.2800 for TP of 1.3000.

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