FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

USDCAD recovered above 1.3600 after the Bank of Canada's monetary policy. The central bank has hiked interest rates by 50 bpbs to 3.75% compared to a forecast of 75bpbs, the highest level since 2008. It was the sixth consecutive increase this year. Markets eye US PCE and persona;l spending for further direction.

 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov dropped to 84.8% from 95% a week ago.

Technically in the 4-Hour chart, the pair is holding above the short-term( 21- EMA), long-term moving average of 1.35694 (200- EMA), and below 55 EMA. Any violation above 1.3660 confirms intraday bullishness. A jump to 1.3735/1.3800 is possible.

WTI crude oil pared some of its gains as US crude inventories rose by 2.6 million barrels last week. Any breakdown of immediate support of $87 confirms further weakness.  

The near-term support is around 1.3570 and any breach below targets 1.1.3600/1.3500.

Indicators (4-Hour chart)

CCI (50)- Bullish

ADX- Neutral

It is good to buy on dips around  1.3680 with SL around 1.3600 for a TP of 1.4000.