FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (1 Hour Chart)

Tenken-Sen- 1.25421

Kijun-Sen- 1.25595

USDCAD continues to trade lower on upbeat Canadian jobs data. The economy has added 259.2k in February compared to a forecast of 98.5k and the unemployment rate dropped to 8.2% from 9.2%. The pair declined to 1.25106 after data. The surge in crude oil prices and upbeat market sentiment is supporting the Canadian dollar. DXY jumped more than 50 pips after forming a minor bottom around 91.35, any violation below 91.15 confirms further weakness.

 WTI crude oil surged more than $3 on global economic recovery and vaccine rollout in major countries. The intraday trend is bullish as long as support $63.70 holds.

Technically, the pair faces near-term resistance at 1.2580. Any indicative break above will take till 1.2625/1.2685/1.2750. The significant support is around 1.2500; an indicative violation below will take to the 1.24650/1.2420.

Indicator (1 Hour chart)

CAM indicator – Bearish

Directional movement index –Bearish

It is good to sell on rallies around 1.2568-70 with SL around 1.2620 for a TP of 1.2465.