FxWirePro: USDCAD Daily Outlook
Ichimoku analysis (4-hour chart)
USDCAD is trading flat despite better than expected Canadian GDP. It came at 4.5% for May compared to a forecast of 3.5%. The US data came mixed with Personal spending grows by 5.6% and income declined by 1.1%. The Chicago PMI in July rose to 51.9 vs estimate of 44.0. It hits an intraday high of 1.34360 and is currently trading around 1.342340.
WTI Crude oil declined sharply after a minor recovery above $40 on US-China trade war escalation. Any break below $38.50 confirms bearish continuation and is currently trading around $39.87.
Technically, the pair is facing strong support at 1.3380. A break below targets 1.3330/1.33150. The near term resistance is at 1.3460, an indicative break beyond will take the pair to the next level till 1.3500/1.3540.
It is good to buy on dips around 1.3428-30 with SL around 1.3380 for the TP of 1.3540.