FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (Hourly Chart)

Tenken-Sen- 1.27359

Kijun-Sen- 1.27264

USDCAD recovered slightly after a major sell-off. The pair was one of the best performers in the past 9 months and lost more than 13% on broad based US dollar selling and COVID-19 vaccine optimism. The US retails sales declined for the second consecutive months and dropped by -1.1% in November compared to a forecast of -0.3%. US flash manufacturing PMI came  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 a fresh year high at $47.88 today and hovering near that level. Any break above $48 targets $50 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.