FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (1-Hour Chart)

Tenken-Sen- 1.26612

Kijun-Sen- 1.26541

USDCAD formed a double bottom near 1.2600 and shown a minor recovery. The intraday trend is weak as long as resistance 1.27650 holds.  The renewed demand in the US dollar and minor sell-off in crude oil prices are supporting the pair at lower levels.  The pair was one of the best performers in the past 1-1/2 months on upbeat global sentiment and surging oil prices. The jump in the US 10 year yield also supporting the US dollar at lower levels. USDCAD hits an intraday low of 1.26982 and currently trading around 1.26735.

WTI crude oil declined slightly due to profit booking from a multi-year high. The overall trend is bullish as long as support $57.40 holds.

Technically, the pair faces near-term resistance at 1.2765. Any indicative break above will take till 1.2800/1.2835. The significant support is around 1.2580; an indicative violation below will take to the 1.2520/1.2480.

It is good to sell on rallies around 1.27000-25 with SL around 1.2750 for a TP of 1.2600