FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.26585

Kijun-Sen- 1.26943

USDCAD continues to trade higher and trading above 1.2700 despite strong Canadian retail sales. It came in November at 1.3% compared to an estimate of 0%. US Markit flash manufacturing PMI rose to 13-1/2 high at 59. USDCAD hits an intraday high of 1.27277 and currently trading around 1.27163.

WTI crude oil has taken support near the trend line and shown a nice recovery on upbeat global sentiment. Any violation above $54 confirms bullish continuation, a jump till $56 likely.

Technically, the pair faces near term resistance at 1.2730. Any indicative break above will take till 1.2765/1.2790. The near term support is around 1.2680 an indicative violation below will take to the next level till 1.2650/1.2630.

It is a good buy on dips around 1.2680-825 with SL around 1.2650 for a TP of 1.2790.