Intraday bias - Bullish
USDCAD gained for the third consecutive day on a strong dollar. Markets eye the Bank of Canada's monetary policy for further direction. The Canadian central bank expected to increase rates by 75 bpbs. US dollar index hits fresh 20- year high on upbeat US ISM services data. It came at 56.90 in Aug compared to a forecast of 55.40, the second consecutive monthly increase.
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 (1.29797). Any jump above 1.3220 confirms a bullish continuation. A jump to 1.3300/1.3345/1.3420 is possible. USDCAD hits a high of 1.31718 and is currently trading around 1.31639.
WTI crude oil is trading weak for the second consecutive day on recession fears. Any breach below $85 confirms further bearishness.
The near-term support is around 1.3125, and any breach below targets 1.3070/1.3020/1.2965.
Indicators (4 Hour chart)
CCI (50)- Bullish
ADX- Neutral
It is good to buy on dips around 1.3070 with SL around 1.3000 for TP of 1.3220/1.3300.
