FxWirePro: USDCAD Daily Outlook

Ichimoku analysis (15min Chart)

Tenken-Sen- 1.27120

Kijun-Sen- 1.27120

USDCAD recovered sharply, more than 50 pips on broad-based US dollar buying. US dollar index surged past 91 levels after upbeat US retail sales. It rose 5.3% in Jan m/m, the highest jump in the seventh months. The data came much better than the estimate of 1.1%.     The Canadian annual inflation surged to 1% in Jan, from 0.7% in December. The jump in the US 10 year yield also supporting the US dollar at lower levels. USDCAD hits an intraday low of 1.27398 and currently trading around 1.27304.

WTI crude oil declined more than $1.5 after hitting a fresh year high on the surging US dollar. 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.

Indicator (15 min chart)

CAM indicator – Bullish

Directional movement index – Bullish

It is good to buy on dips around 1.2728-30 with SL around 1.2680 for a TP of 1.2800.