Here’s today’s Ichimoku cloud analysis for the USD/CAD pair.
The Invest Diva Diamond Analysis looks at investment strategies from 5 points: technicals, fundamentals, sentiment, capital, and overall. The USDCAD pair today has some solid fundamental and technical bullish indications. That is apparent especially in the Ichimoku cloud analysis on the daily chart.
Here are some of the topics we discussed.
On Tuesday we found out that U.S. homebuilding rebounded in October and permits for future home construction jumped to a more than 12-year high, Canada’s Manufacturing sales edged down 0.2% in September, and the UK’s Manufacturing output volumes in the quarter to November continued to fall. On Wednesday, the ECB Publishes Financial Stability Review, Canada published its Consumer Price Index (YoY) (OCT), and the FOMC publishes Meeting Minutes (OCT 30).
USD/CAD Ichimoku Cloud Analysis
The USD/CAD pair has just confirmed above the daily Ichimoku cloud in a solid bullish momentum as the pair moves to form a double bottom bullish reversal pattern.
The future cloud is bearish so we could see a temporary pullback towards the upper band of the Ichimoku cloud before further gains towards the resistance level and the neckline of 1.3345, which also falls perfectly on the 61% Fibonacci retracement level.