FxWirePro: USDCAD Daily Outlook
Candlestick pattern- Shooting star
Ichimoku Analysis (Daily Chart)
USDCAD is trading lower for a second consecutive week and has lost more than 350 pips.ob board-based US dollar selling. The dovish fed comments and weak US economic data are putting pressure on the US dollar. US Gross domestic product surged at an annual rate of 6.3% in the second quarter slightly below the estimated 8.5%. The number of people who have filed for unemployment benefits by 24000 to 400000 last week compared to a forecast of 382000. The pair hits an intraday low of 1.24295 and is currently trading 1.24353. Markets eye US PCE and Canada GDP for further direction.
WTI crude holds well above $72 on the US inventory drop. According to EIA, inventories fell by 4.1 million barrels compared to a forecast of -2.6 million.
On the flip side, immediate support stands at 1.2400, and an indicative break below that level will drag the pair down till 1.2360/1.2300.
The pair is facing strong resistance at 1.2610 (200-day EMA), violation above will take till 1.2660/1.2700/1.27415.
Indicator (Daily chart)
Directional movement index –Neutral
It is good to sell on rallies around 1.2605-08 with SL around 1.2660 for the TP of 1.2465.