USD/CAD Candlesticks and Ichimoku Analysis

Although the greenback rose marginally to 1.1655 (just below the 38.2% Fibonacci retracement of 1.3066 to 1.0784 at 1.1656), as this move is still viewed as the correction of the decline from 1.3066, upside should be limited to 1.1810/15 and Ichimoku cloud top (currently locating at 1.1866) should cap the rebound from 1.0784, it is getting more likely that the currency pair would meet renewed selling around 1.1924 and stay well below 1.2192/94 (a previous support turned resistance as well as the 61.8% Fibonacci retracement of 1.3066 to 1.0784).

On the downside, a retreat to test the Ichimoku cloud bottom and Tenkan-Sen (now at 1.1365 and 1.1342 respectively) is possible, however, U.S. dollar shall find support around 1.1190/00 and bring another rebound later. Only below support at 1.0942 would indicate the recovery from 1.0784 has ended, then the fall from 1.3066 top shall resume for a retest of 1.0784 and later towards 1.0590/00 (61.8% Fibonacci retracement of 0.9059 to 1.3066).

On the daily chart, the greenback found renewed buying interest at 1.1445 last Friday and resumed recent rise from 1.0784 low, however, as the Ichimoku cloud is still relatively thick, we still expect the Ichimoku cloud bottom (now at 1.0675) to attract heavy selling interest and provide strong resistance, so sharp rise beyond there is unlikely at the moment and price should stay well below resistance at 1.1815.