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FxWirePro- USDCAD trades higher after BOC policy, good to buy on dips

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.

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