FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (4-Hour Chart)

Tenken-Sen- 1.28129

Kijun-Sen- 1.27944

USDCAD is trading slightly despite broad-based US dollar buying. The surge in crude oil price is supporting the pair at lower levels.   DXY's strength is preventing the pair from further weakness. The index is holding well above 91 levels, a jump to 91.50 likely. USDCAD hits an intraday high of 1.27904 and currently trading around 1.28240.

WTI crude oil hits fresh year high and broken significant resistance$54 due to declining crude inventories and hopes of demand to reach pre COVID level. The overall trend is bullish as long as support $51.50 holds.

Technically, the pair faces near term resistance at 1.28820 (Jan 28th high). Any indicative break above will take till 1.2965/1.3000. The near term support is around 1.2780; an indicative violation below will take to the 1.2720/1.2680/1.2600.

It is good to buy on dips around 1.2780 with SL around 1.2750 for a TP of 1.2900.