FxWirePro- USDCAD Daily Outlook
Ichimoku analysis (4-hour chart)
The pair is trading higher despite the weak US dollar. The weakness in crude oil prices as new corona variant Omicron spread across the globe. Canada which is a major exporter of commodities will have an impact due to the Omicron virus. The US dollar index declined more than 60 pips as a sell-off in US treasury yield. It hits a high of 1.28124 and is currently trading around 1.27844. The intraday trend remains bullish as long as support 1.2680 holds.
Crude oil price-
WTI crude oil crashed nearly 13% in the past two days as a virus threat will decrease demand for crude oil. Any breach below $65 confirms the bearish trend.
Intraday Trend –Bullish
The near-term resistance is around 1.2820, a breach above targets 1.28485/1.2900/1.2960.On the lower side, immediate support stands around 1.2720; violation below will take the pair down to the next level 1.2680/1.2640/1.2600.
It is good to buy on dips around 1.2750 with SL around 1.2700 for a TP of 1.2848.