FxWirePro-USDCAD Daily Outlook

Intraday bias - Bullish

USDCAD pared more than 100 pips after BOC monetary policy. The central bank hiked rates by 50 bpbs to 4.25%, the highest level since 2008. It also said that it would consider "whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target.".  Technically in the 4 -hour chart, the pair is holding below short-term (21- EMA), 55- EMA, and the long-term moving average of 200 EMA (1.34873). Any violation above 1.3700 confirms the intraday bullish trend. A jump to 1.3808/1.3850.is possible. USDCAD hits a high of 1.36894 at the time of writing and is currently trading around 1.36745.

 WTI crude oil price hits fresh year low despite upbeat Crude oil inventory data.  According to EIA, inventory dropped 5.3 million barrels for the week to Dec 2nd, compared to a forecast of -3.5 M. Any break below $70 confirms further bearishness.

 The near-term support is around 1.3640 any breach below targets 1.3580/1.3500.

Indicators (4 Hour chart)

CCI (50)- Bullish

ADX- Bullish

It is good to buy on dips around 1.3628-30 with SL around 1.3570 for a TP of 1.4000.