Intraday bias - Bullish
USDCAD gained more than 300 pips in the past four days on board-based US dollar buying. US CPI came at 8.6% in May compared to a forecast of 8.3%, the largest YOY increase in 40 years. Surging Inflation has increased the chance of aggressive rate hike. Technically in the 4-hour chart, the pair is holding above the short-term (21- and 55 EMA) and long-term moving average of 200 MA (1.2788). Any close below that level of 1.2780 confirms a bearish trend. A dip to 1.2730/1.2680 is possible. USDCAD hits an intraday low of 1.28366 and is currently trading around 1.28444.
The near-term resistance is around 1.28650, any breach below targets 1.2900/1.29471.
Indicators (4- Hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 1.28000 with SL around 1.2760 for TP of 1.2900.
