FxWirePro- USDCAD Daily Outlook

Ichimoku analysis (Hourly Chart)

Tenken-Sen- 1.25536

Kijun-Sen- 1.25289

USDCAD continues to trade higher and broken significant resistance 1.2550 on broad-based US dollar buying. The major sell-off in Crude oil prices is also putting pressure on the Canadian dollar. The extension of lockdown in Germany till Apr 18 and slow vaccine rollout in European countries has increased demand for safe-haven assets like yen, US dollar. The US 10-year bond yield cooled off after hitting a fresh multi-year high. DXY is consolidating in a narrow range between 91.30 and 92.16 in the past three days.

 WTI crude oil is trading weak after a minor pullback to $62. The spread of the second wave of coronavirus in major European countries is dragging oil prices down. The short-term trend is bearish as long as resistance $62 holds.

Technically, the pair faces near-term resistance at 1.2600. Any indicative break above will take till 1.2660/1.2700/1.2745. The significant support is around 1.2530; an indicative violation below will take to the 1.2500/1.2460/1.2430/1.2360.

Indicator (1 Hour chart)

CAM indicator – Bullish

Directional movement index –Bullish

It is good to buy on dips around 1.2560 with SL around 1.2525 for a TP of 1.2660.