Significant Resistance - 1.2900
USDCAD regained above 1.2850 levels on board-based US dollar buying. It hits a 20-year high at 103.92 on rate hike expectations. According to the Fed watch tool, the probability for a 50 bpbs rate hike in May has increased to 99.10% from 96% a week ago. The policy divergence between the US fed and the Bank of Canada puts pressure on Loonie at higher levels. USDCAD hits an intraday high of 1.27500 and currently trading around 1.27261.
Canada's economy rose 1.1% in Feb vs. a forecast of 0.8%, the largest monthly growth since Fed 2021
Technical:
USDCAD is holding above short-term (21 EMA), medium-term (55 EMA), and long-term ( 200 MA) in the daily chart.
ADX- Neutral
CCI (50) above zero line in the daily chart.
Resistance to be watched- 1.2900, 1.2950, and 1.3000.
Support- 1.27800, 1.2700, and 1.2660.
It is good to buy on dips around 1.2800 with SL around 1.2750 for a TP of 1.2950.
