Intraday bias - Bullish
USDCAD hits a two-year high on weak Canadian CPI data. The yearly inflation for August came at 7% vs an estimate of 7.3%. The core CPI dropped to 5.8% YoY, below the forecast of 5.8%. Markets eye US Fed monetary policy data for further direction. It hits an intraday high of 1.33937 and is currently trading around 1.33674.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 82% from 75% a week ago.
Technically in the 4-Hour chart, the pair is holding above the short-term( 21- EMA), 55- EMA, and the long-term moving average of 200 EMA (1.30727). Any violation above 1.3350 confirms further bullishness. A jump to 1.3435/1.3500 is possible.
WTI crude oil trades flat ahead of US Fed monetary policy. Any breach above $90 confirms further bullishness.
The near-term support is around 1.3260, and any breach below targets 1.3215/1.3170-/1.3120/1.3070.
Indicators (4 Hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 1.3280 with SL around 1.3220 for TP of 1.3435.
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