FxWirePro- USDCAD Daily Outlook

Intraday bias - Neutral

USDCAD lost more than 100 pips dovish BOC Macklem comments. He said that the Bank of Canada expects to halt its eighth consecutive hikes as inflation slows down. It hits an intraday low of  1.3360 and is currently trading around 1.33715

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb rose to 93.7% from 82.40% a week ago.

  The US 10-year yield traded higher for the second consecutive day. Any break and close above 3.63% confirm minor bullishness. The yield spread between 10 and 2-year widened to -81.30 basis points from -72.40 bpbs.

Technically in the 4-Hour chart, the pair is holding below the short-term( 21- EMA), 55 EMA, and the long-term moving average of 1.34255 (200- EMA). Any violation below 1.3360 confirms further bearishness. A dip to 1.3300/1.3220 is possible.

WTI crude oil trades higher for a third consecutive day in hopes of an increase in Chinese demand. Any break above $80 will push oil prices up to $85.  

The near-term resistance is around 1.3470 and any breach above targets is 1.3525/1.3600.

Indicators (4-Hour chart)

CCI (50)- Bullish

ADX- Bullish

It is good to buy on dips around 1.3350 with SL around 1.3300 for a TP of 1.3525.