Wed, Feb 08, 2023 @ 18:07 GMT
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Technical Outlook: USDCAD – Falling Daily Cloud, Higher Oil Prices Continue To Cap Recovery

The pair is holding in tight range on Wednesday, with near-term risk turning lower as CAD got boosted by higher oil prices.

The USDCAD pair’s price is in descending mode from 06 Oct high at 1.2597, after the base of descending daily cloud capped recovery. The price remained capped by falling cloud in past few sessions and probes below initial support at 1.2507 (daily Tenkan-sen), firm break of which would generate another negative signal for extension of pullback from 1.2597.

However, corrective action could be shallow if Fed minutes today come in hawkish tone that would boost the greenback. US inflation data on Friday are also in near-term focus.

Bullish scenario requires firm penetration into daily cloud to signal further upside.

Lift above 1.2597 peak would expose 26 Aug top at 1.2662 and cloud top at 1.2697, in extension.

Res: 1.2527, 1.2558, 1.2597, 1.2662
Sup: 1.2507, 1.2484, 1.2448, 1.2416

Windsor Brokers Ltd
Windsor Brokers Ltd
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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