FxWirePro- USDCAD Daily Outlook

Intraday bias - Neutral

USDCAD gained momentum after upbeat US GDP data. The US economy grew 3.2% in the third quarter, above the estimate of 2.9%. Markets eye the US PCE price index for further direction. It hits an intraday low of  1.36202 and is currently trading around 1.36236.

Canadian inflation rose 6.8% from a year ago, high than economist estimation of 6.7%.On the monthly basis, CPI rose 0.1% above the forecast of 0%.

 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec rose to 31% from 26.10% a week ago.

 The US 10-year yield showed a minor pullback. Of more than 8%.The US 10 and 2-year spread narrowed to -58 basis points from -85 bpbs.

Technically in the 4-Hour chart, the pair is holding above the short-term( 21- EMA), 55 EMA, and above the long-term moving average of 1.35525 (200- EMA). Any violation below 1.3570 confirms further bearishness. A dip to 1.3500/1.34000 is possible.

WTI crude oil gained more than $5  on positive market sentiment.

The renewed spread of COVID across the globe putting pressure on oil at higher levels. Any break above $80 will push oil prices up to $85.  

The near-term resistance is around 1.3725 and any breach above targets is 1.3800/1.3850.

Indicators (4-Hour chart)

CCI (50)- Bearish

ADX- Neutral

It is good to buy on dips around 1.3570 with SL around 1.3500 for a TP of 1.3700.