FxWirePro- USDCAD Daily Outlook

FxWirePro- USDCAD Daily Outlook    

Intraday bias - Bearish

USDCAD trades flat after a major sell-off of more than 200 pips. The board-based US dollar selling putting pressure on the pair at higher levels. US dollar index pared most of its gains after hitting a multi-month high of 110.78 and dropped below the 108 level. Markets eye US CPI data for further direction. It hits an intraday low of 1.29639 and is currently trading around 1.29713.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 88% from 57% a week ago.

Technically in the 4-Hour chart, the pair is holding below the short-term( 21- EMA),  55- EMA, and above the long-term moving average of 200 EMA (1.29958). Any violation below 1.29700 confirms further bearishness. A decline to 1.2925/1.2880 is possible. 

WTI crude oil recovered sharply after hitting a multi-month low of $81.21 on supply concerns. Any breach above $90.50 confirms further bullishness.  
 
The near-term resistance is around 1.3020, and any breach above targets 1.3070/1.3148/1.3220.
     
Indicators (4 Hour chart)
 
CCI (50)- Bearish 
 
ADX- Bearish 
 
It is good to sell on rallies around 1.3000 with SL around 1.30560 for TP of 1.2880.
 
 
 
 

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