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FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

 

USDCAD regained above 1.3000 on board-based US dollar buying. The massive sell-off in crude oil prices also puts pressure on the Canadian dollar.US dollar index breaks significant resistance at 105.78 and hits a 19-year high on recession fears. Technically in the 4 -Hour chart, the pair is holding below the short-term (55 EMA, and 21- EMA), above the long-term moving average of 200 EMA (1.28491). Any violation below 1.300 confirms the intraday bearish trend. A dip to 1.2940/1.29150 is possible. USDCAD hits an intraday high of 1.3055 and is currently trading around 1.30514.

 

WTI crude oil price dropped below $100 on recession risks. Any breach below $97.50 confirms further bearishness.

 

The near-term resistance is around 1.30850, any breach above targets 1.3150/1.3200.

 

Indicators (4 Hour chart)

 

CCI (50)- Bullish

 

ADX- bullish

 

It is good to buy on dips around 1.3000 with SL around 1.2945 for TP of 1.3150.

 

 

 

 

 

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