FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (Daily Chart)

Tenken-Sen- 1.29865

Kijun-Sen- 1.30330

USDCAD continues to trade weak and hits the lowest level since Apr 2018 on broad-based US dollar selling. The COVID vaccination in UK and Russia has increased demand for riskier assets like stocks. Markets eye BOC monetary policy statement today for further direction. The central bank is expected to keep rates unchanged at 0.25% at least till 2023.  DXY lost more than 25 pips from minor top 91.01recovered more than 50 pips after hitting a 32 month low. Loonie hits an intraday low of 1.27725 and currently trading around 1.27793.

WTI crude oil is consolidating after a massive rally; any violation above $46.65 confirms bullish continuation.

Technically, the pair faces near term resistance at 1.2865. Any indicative break above targets 1.2900/1.2940/1.300. The near term support is around 1.2760; an indicative break below will take to the next level till 1.2725/1.2700.

It is good to sell on rallies around 1.2805-08 with SL around 1.2840 for the TP of 1.2725.