FxWirePro: USDCAD trades weak on surging oil price, good to sell on rallies

Candlestick pattern- Bearish Engulfing

Ichimoku Analysis (8 Hour chart)

Tenken-Sen- 1.40736

Kijun-Sen- 1.40366

USDCAD has lost more than 80pips from yesterday's high of 1.41148. The fall was mainly due to strong crude oil prices. Oil rose more than 25% in the past three days on easing of lockdown and declining US oil rig count. According to Baker Hughes, several active U.S rigs drilling dropped for 9th week by7 34 to 258 this week. WTI crude holding well above $30 and is currently trading around $31.86.

Technically, significant intraday support stands at 1.4000, and any violation below targets 1.3900. The near term resistance is at 1.4080, an indicative break above will take the pair to next level till

1.4120/1.4145/1.41700. Trend continuation can happen only above 1.42650.

It is good to sell on rallies around 1.4060-62 with SL around 1.412 for the TP of 1.3955.