Intraday bias - Bullish
USDCAD regained above 1.3300 after a minor sell-off. Markets eye Canada CPI for further direction. Canadian inflation is expected to decline -by 0.1% in Aug from 0.1% MoM. The jump in US 10-year yields to 3.5%, the highest level in 2011 in hopes of a hawkish 75 bpbs rate hike by the Fed. It hits an intraday high of 1.33006 and is currently trading around 1.32883.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep dropped to 80% from 69% a week ago.
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 (1.30549). Any violation above 1.3325 confirms further bullishness. A jump to 1.3350/1.3435 is possible.
WTI crude oil regained slightly after a spill at Iraq's Basra terminal. Any breach above $90 confirms further bullishness.
The near-term support is around 1.3260, and any breach below targets 1.3215/1.3170-/1.3120/1.3070.
Indicators (4 Hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 1.3260 with SL around 1.3200 for TP of 1.3435.
