FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (Hourly Chart)

Tenken-Sen- 1.27478

Kijun-Sen- 1.27563

USDCAD has shown a minor jump after a significant sell-off of more than 450 pips in past one month. The slight recovery was mainly due to short covering and increasing COVID-1 9 cases. Germany Chancellor Merkel announced tight measures to curb Coronavirus spread. She has asked stores, schools, and daycare centers to be closed until Christmas. The slight increase in demand for safe-haven assets is supporting the US dollar at lower levels. DXY surged more than 30pips from a low of 90.42. Loonie hits an intraday low of 1.27873 and currently trading around 1.27804.

WTI crude oil hits fresh year high and declined more than $1.5 on profit booking. Any break below $45.70 targets $45 likely.

Technically, the pair faces near term resistance at 1.2800. Any indicative break above will take till 1.2830/1.2865/1.2900/1.2940/1.300. The near term support is around 1.270; an indicative break below will take to the next level till 1.2725/1.2700.

It is good to buy on dips around 1.2738-40 with SL around 1.2700 for the TP of 1.2838.