Intraday trend- Neutral
Significant resistance- 1.3660
USDCAD has traded in a narrow range between 1.36194 and 1.3550 for the past two days. It hit a high of 1.36093 yesterday and is currently trading around 1.35930.
Bank of Canada kept its rates unchanged at 5% and said that they are concerned about inflation risks and will take action if necessary. WTI crude trading weak for the seventh consecutive week, the longest losing streak since 2018. The decline in Chinese crude oil imports and weak Chinese economic data put pressure on the commodity at higher levels.
Technically in the 4-hour chart, the pair is holding above short-term (21- and 55 EMA) and below 200 EMA (1.36480). Any break above 1.3660 will take the pair to 1.3720/1.3800.
The near-term support is around 1.35485, and any breach below targets 1.3470/1.3435.
Indicators (4 -hour chart)
CCI (50)- Bullish
ADX- Neutral
It is good to sell on rallies around 1.3660 with SL around 1.3700 for a TP of 1.3555.
