FxWirePro: USDCAD struggles to break above trend line resistance, good to sell on rallies
Ichimoku analysis (Hourly Chart)
USDCAD continues to trade weak after a minor jump till 1.31774. The Canadian annual inflation in September jumped to 0.5%, from 0.1% in August. The retail sales rose 0.4% month-on-month in August compared to an estimate of 1.0%. The positive US jobless claims released today are supporting the US dollar at lower levels. The number of people filed for unemployment benefits declined by 55000 to 787000 in the week ended Oct 17 compared to a forecast of 86000. It hits an intraday low of 1.31239 and currently trading around 1.31370.
WTI crude oil is trading slightly higher and holding above $40 on stimulus hopes. Any violation above $41.50 targets $43/$43.75.
Technically, the pair faces near term resistance at 1.3180. Any violation above targets 1.3278/1.3260. The near term support is around 1.3100, an indicative break below will take to the next level till 1.30440/1.3000.
It is good to sell on rallies around 1.3138-40 with SL around 1.31850 for the TP of 1.3050.