FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (hourly Chart)

Tenken-Sen- 1.26382

Kijun-Sen- 1.2580

USDCAD jumped more than 200 pips on broad-based US dollar buying. The surge in US 10- year yield on hopes of more fiscal stimulus in the US is supporting the dollar at lower levels.  Personal income in the US soared to 10% in Jan slightly better than the forecast of 9.5%.  US Chicago PMI declined to 59.5 in Feb slightly less than the estimated 61.1. USDCAD hits an intraday high of 1.26861 and currently trading around 1.26586.

 WTI crude oil declined more than $1 after the inventory build-up. According to the Energy Information Administration, crude inventory rose to 1.3M million compared to a forecast of -6.5 million barrels. The overall trend is bullish as long as support $58.60 holds.

Technically, the pair faces near-term resistance at 1.2700. Any indicative break above will take till 1.2765/1.2800/1.2835. The significant support is around 1.2590; an indicative violation below will take to the 1.2520/1.2480.

Indicator (Hourly chart)

CAM indicator – Bullish

Directional movement index – Bullish

It is good to buy on dips around 1.2628-30 with SL around 1.2590 for a TP of 1.2765.