FxWirePro: USDCAD Daily Outlook

Ichimoku Analysis (Hourly chart)

Tenken-Sen- 1.31710

Kijun-Sen- 1.31800

USDCAD has halted its 1-week of the bullish trend and shown a minor decline from the temporary top 1.3205. The pair recovered sharply after dovish BOC and better than expected US economic data. The US Conference Board consumer confidence came at 131.6 in Jan, the highest level in 5 months. The durable goods orders surged 2.4% in Dec vs forecast of 1.2%. The decline in crude oil prices due to the outbreak of coronavirus also putting pressure on the Canadian dollar.

WTI crude is in sell-off mode for the past 3-weeks and lost more than 20% from highs of $60.29. It hits low of $52.18 and is currently trading around $53.80.

On the flip side, immediate support at 1.3145 and any violation below will drag the pair down till 1.3100/1.3060.

The near-term major resistance is at 1.3235, an indicative break above targets 1.3300/1.3380.

It is good to buy on dips around 1.3148-50 with SL around 1.3100 for the TP of 1.3230.