FxWirePro: USDCAD trades higher on broad-based US dollar buying, good to buy on dips

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- 1.4060

Kijun-Sen- 1.40075

USDCAD has shown a massive recovery of more than 200 pips from a low of 1.39011. The surge was mainly due to broad-based US dollar and weak crude oil prices.   The COVID-19 is a major threat to the global economy as recession will decrease the demand for crude oil prices.

Crude oil declined despite inventory draw and EIA has reported a crude inventory decreased by 700000 barrels for the week to May 8. Any violation above $28 confirms bullish continuation.

Technically, major intraday support stands at 1.4060, and any violation below targets 1.4000/1.3900. The near term resistance is at 1.4125, an indicative break above will take the pair to next level till

1.4175/1.42650. Trend continuation can happen only above 1.42650.

It is good to buy on dips around 1.4085-88 with SL around 1.4050 for the TP of 1.420/1.4258.