Intraday bias - Bullish
USDCAD pared some of its gains on strong Oil prices. The policy divergence between the US Fed and BOC supports the pair at lower levels. It hit an intraday high of 1.36063 and is currently trading around 1.36018.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 80.50% from 89% a week ago.
The US 10-year yield showed a minor sell-off on less hawkish comments from Fed chairman Powell. The US 10 and 2-year spread widened to -84% from -66%.
Technically in the 4-Hour chart, the pair is holding below the short-term( 21- EMA), 55 EMA, and above the long-term moving average of 1.33898 (200- EMA). Any violation above 1.3660 confirms further bullishness. A jump to 1.3700/1.3780 is possible. The near-term support is around 1.35800, and any breach below targets 1.3535/1.3480.
WTI crude oil rose more than $2 after China cut stamp duty on stocks. Any break above $82.50 will push oil prices up to $85.
Indicators (4-hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 1.3580 with SL around 1.3535 for a TP of 1.3700.
