FxWirePro- USDCAD Daily Outlook

FxWirePro- USDCAD Daily Outlook    

Intraday bias - Bullish 

USDCAD hits multi-month high on declining easing crude oil price. It hit a high of 1.38807 and is currently trading around 1.38179.

WTI crude oil prices lost more than $8 on easing supply concerns.  Markets eye developments in the Middle East for further direction. 

Major Economic data for the day
Oct 31st, 2023, Employment cost index  q/q (12:30 pm GMT)

                          S&P/CS Composite -20 HPI y/y  (1 pm GMT)
                          
                         Chicago PMI and CB consumer confidence (1:45 and 2 p.m. GMT) 

According to the CME Fed watch tool, the probability of a no-rate hike in Nov decreased to 98.3% from 98.9% a week ago.
 
 The US 10-year yield declined slightly on easing geopolitical tension. The US 10 and 2-year spread narrowed to -16.20% from -75%.
 
Technically in the 4-Hour chart, the pair is holding below the short-term( 21- EMA), above  55 EMA, and the long-term moving average of 1.3660 (200- EMA). Any violation above 1.3900 confirms further bullishness. A jump to 1.3970/1.4000 is possible. The near-term support is around 1.3800 and any breach below targets 1.3735/1.3680.

Indicators (4-Hour chart)
 
CCI (50)- Bullish
 
ADX- Neutral
 
It is good to buy on dips around 1.3780  with SL around 1.3735 for a TP of 1.3900/1.4000.