FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (Monthly Chart)

Tenken-Sen- 1.33810

Kijun-Sen- 1.36282

USDCAD is trading weak for a tenth consecutive month on the strong Canadian dollar. The upbeat market sentiment, hopes of more stimulus from the US, and declining number of coronavirus cases are supporting the Canadian dollar. The Canadian retail sales declined by -3.4% in Dec compared to a forecast of -2.5%. The pair declined despite surging US bond yield. USDCAD hits an intraday low of 1.27398 and currently trading around 1.27304.

WTI crude oil hits a fresh year high in hopes of rising demand due to global economic recovery. It has surged to $62.97 and currently trading around $62.52. The overall trend is bullish as long as support $58.60 holds.

Technically, the pair faces near-term resistance at 1.26650. Any indicative break above will take till 1.2700/1.2765/1.2800/1.2835. The significant support is around 1.2580; an indicative violation below will take to the 1.2520/1.2480.

Indicator (monthly chart)

CAM indicator – Bearish

Directional movement index – Bearish

It is good to sell on rallies around 1.2660-625 with SL around 1.2700 for a TP of 1.2520