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FxWirePro – USDCAD Daily Outlook

Intraday bias - Bullish

 

USDCAD trade higher for the sixth consecutive day and surged more than 450 pips on board-based US dollar buying. Markets eye US Fed monetary policy for further direction. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jun increased to 96.5% from 3.9 % a week ago.  Technically in the weekly chart, the pair is holding above the short-term (21- and 55 EMA) and below the long-term moving average of 200 MA (1.3035). Any weekly close above 1.3035 confirms a bullish continuation. A jump of 1.30960/1.3150 is possible.  USDCAD hits an intraday high of 1.29210 and is currently trading around 1.29163.

 

The near-term resistance is around 1.2928 any breach above targets 1.2960/1.3000.

 

Indicators (4- Hour chart)

 

CCI (50)- Bullish

 

ADX- Bullish

 

It is good to buy on dips around 1.2900 with SL around 1.2860 for TP of 1.300.

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