FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

 USDCAD jumped sharply after the hawkish Powell testimony. It shows that Fed is likely to increase rates more than anticipated.  Fed chairman said that the central bank is also "prepared to increase the pace of rate hike. It hits a high of  1.37734 a the time of writing and is currently trading around 1.37556.

Markets eye the Bank of Canada's monetary policy for further direction.  Any dovish comments from BOC Governor will push Loonie further higher.

 Major economic data today

US ADP employment data   (1:15 pm GMT)

BOC rate statement (3:00 pm GMT)

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar surged to 74.9% 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 above 1.3810 confirms further bullishness. A jump to  1.3850/1.3890 is possible.

WTI crude oil pared some of its gains on rate hike fears. Any daily close below $76.50 confirms minor weakness.

The near-term support is around 1.3740 and any breach below targets is 1.3700/1.3650.

Indicators (4-Hour chart)

CCI (50)- Bullish

ADX- Neutral

It is good to buy on dips around 1.3700 with SL around 1.3640 for a TP of 1.3850.