FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (1-Hour Chart)

Tenken-Sen- 1.26924

Kijun-Sen- 1.2720

USDCAD continues to trade lower despite the strong US dollar. The surge in crude oil prices to global economic recovery is also supporting the Canadian dollar. The optimism in corona vaccination and hopes of more stimulus has decreased demand for safe-haven assets like the US dollar. DXY has shown a minor recovery. Any jump above 90.65 confirms an intraday bullish trend. USDCAD hits an intraday high of 1.26744 and currently trading around 1.26986.

WTI crude oil hits fresh year high and broken significant resistance$58.60 after EIA raised price forecasts for 2021and 2022. The overall trend is bullish as long as support $57.20 holds.

Technically, the pair faces near term resistance at 1.27250. Any indicative break above will take till 1.2765/1.28000. The near term support is around 1.2680; an indicative violation below will take to the 1.2620/1.26000.

It is good to sell on rallies around 1.2728-30 with SL around 1.27650 for a TP of 1.2600.