Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.2694
Kijun-Sen- 1.26275
The pair rebounded sharply after the Bank of Canada monetary policy. It has kept its rates unchanged at 0.25% and continues its asset purchasing program at $2 billion per week. It hits a high of 1.27617 and is currently trading around 1.27019. The overall trend remains bullish as long as support 1.2490 holds.
The reasons for the jump are
The minor decline in WTI crude oil prices is due to the spread of the delta variant.
The rebound of the US dollar index also supporting the pair at lower levels.
Intraday Trend –Bullish
The near-term resistance is around 1.2780, a breach above targets 1.28090/1.2860/1.2900. On the lower side, immediate support stands around 1.2660; violation below will take the pair down to the next level 1.2552/1.2500.
It is good to buy on dips around 1.2660 with SL around 1.2600 for a TP of 1.2800.
