FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

USDCAD declined after the hawkish rate hike by the Bank of Canada. It has increased interest rates by 75 bpbs to 3.25% in Sep. The central bank is willing to hike the rate further to tackle inflation.  The pair dropped to 1.31109 after the policy.  US dollar index pared some of its gains after hitting a fresh 20- year high.

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 (1.29896). 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 plunged sharply and closes at $81.90 (the lowest level since Jan 24th, 2022. Any breach below $81.50 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.