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.
