FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

USDCAD halted its 4 days of weak trend and The US inflation for Aug dropped to 8.3% YoY Compared to a forecast of 8.1%. Core CPI surged 0.6% over the month, to an annual rate of 6.3%. US Dollar index pared some of its gains and struggled to close above the 110 level. It hits an intraday high of 1.31944 and is currently trading around 1.31819.

According to the CME Fed watch tool, the probability of a 100 bpbs rate hike in Sep rose to 35% from 0% a day 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 (1.30031). Any violation above 1.3225 confirms further bullishness. A jump to 1.3300/1.3350 is possible.

WTI crude oil lost more than $4 from yesterday's high of $89.28 on growth concerns. Any breach above $90.50 confirms further bullishness.  

The near-term support is around 1.3140, and any breach below targets 1.3070/1.3020/1.2970.

Indicators (4 Hour chart)

CCI (50)- Bullish

ADX- Bullish

It is good to buy on dips around  1.3128-30 with SL around 1.3070 for TP of 1.3225.