FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

USDCAD halted its two weeks of bullish trend due to profit booking. The Pair was one of the best performers this month due to hawkish FOMC meeting minutes and strong US economic data. The upbeat US Nonfarm payroll and ISM services have increased the chance of further rate hikes by the Fed. It hits a low of  1.33297 and is currently trading around 1.33405.

 Major economic data today

US CB consumer confidence 

 US Richmond manufacturing Index

Canada GDP

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 25.50% from 18.1% a week ago.

 The US 10-year yield trades flat after a minor pullback. The US 10 and 2-year spread widened to -86.9 basis points from -77% bpbs.

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 1.34573 (200- EMA). Any violation below 1.3570 confirms intraday bearishness. A dip to 1.3530/1.3470/1.3435 is possible.

WTI crude oil regained above the $76 level on upbeat market sentiment. Any weekly close below $73 will drag the oil prices down to $66. 

The near-term resistance is around 1.36000 and any breach above targets is 1.3660/1.37250.

Indicators (4-Hour chart)

CCI (50)- Bullish

ADX- Bullish

It is good to buy on dips around 1.3548-50 with SL around 1.3500 for a TP of 1.36800.