Intraday bias - Bullish
USDCAD pared most of its gains after the hawkish Bank of Canada monetary policy. The central bank surprised the market by hiking 100 bpbs to tackle inflation, the biggest rate increase in 24 years. The surge in US CPI has capped the downside risk of the pair. US CPI hits a 40-year high at 9.1% yearly in June compared to market expectations of 8.8%. Technically in the 4 -Hour chart, the pair is holding below the short-term( 21- EMA), above 55- EMA, and the long-term moving average of 200 EMA (1.28954). Any violation below 1.2980 confirms the intraday bearish trend. A dip to 1.2960/1.2920 is possible. USDCAD hits an intraday high of 1.30250 and is currently trading around 1.30154.
WTI crude oil price lost more than 10%this week on recession fear. Any breach below $93.50 confirms further bearishness.
The near-term resistance is around 1.3050, any breach above targets 1.3085/1.3150.
Indicators (4 Hour chart)
CCI (50)- Bullish
ADX- bullish
It is good to buy on dips around 1.2960 with SL around 1.2920 for TP of 1.3085/1.310.
