FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

 USDCAD recovered after weak Canadian weak economic data. Canadian Ivey PMI which measures economic activity fell to 51.6 from 60.9 the previous month, below the estimate of 55.90. Markets eye Fed chairman Powell's testimony today for further direction. It hits a high of  1.36225 a the time of writing and is currently trading around 1.36190.

The commerce department said on Monday that US factory orders declined -1.6% in Jan vs the forecast of -1.8%.

 Major economic data today

US Fed chairman speech

SNB Chairman Jordan's Speech

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar increased to 31.4% from 24% a week ago.

 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 1.34959 (200- EMA). Any violation below 1.36000 confirms intraday bearishness. A dip to 1.3550/1.3470/1.3435 is possible.

WTI crude oil gained above $80 on supply concerns. Any daily close above $80 confirms further bullishness.

The near-term resistance is around 1.36650 and any breach above targets is 1.37250/1.3800.

Indicators (4-Hour chart)

CCI (50)- Bullish

ADX- Neutral

It is good to buy on dips around 1.3570 with SL around 1.3500 for a TP of 1.37250.