Significant resistance- 1.2950
USDCAD has shown a massive pullback of more than 150 pips after hawkish US Fed policy. The policy divergence between the US Fed and Bank of Canada is supporting pair at lower levels. The spread of Omicron across the globe also puts pressure on commodities currency such as the Canadian and Australian dollars. USDCAD hits an intraday high of 1.29360 and currently trading around 1.29334.
Technical:
USDCAD is holding above short-term (21 EMA), medium-term (55 EMA), and below long-term (100 and 200) in the 4-hour chart.
ADX- Bullish trend with strength above 25 levels.
CCI (50) and woodies CCI zero line.
Resistance to be watched- 1.2950, 1.300, and 1.30507
Support- 1.28480,1.27800,1.2700.
It is good to buy on dips around 1.2900 with SL around 1.2840 for a TP of 1.3000.
