Significant Support - 1.2600
USDCAD recovered slightly after the hawkish Bank of Canada monetary policy. The Central bank hiked interest rates by 50 bpbs to 1-1/2. It stated that BOC going to act forcefully to achieve 2% inflation. US ISM manufacturing PMI rose to 56.1 in May compared to a forecast of 54.40. According to the Fed watch tool, the probability for a 50 bpbs rate hike in June has increased to 99.30% from 94.9% a week ago. USDCAD hits an intraday high of 1.26858 and currently trading around 1.26625.
Markets eye US ADP and US initial jobless claims for further movement.
Technical:
USDCAD is holding below short-term (21 EMA), medium-term (55 EMA), and long-term ( 200 MA) in the 4-Hour chart.
ADX- Neutral
CCI (50) below zero line in the daily chart.
Resistance to be watched- 1.2700, 1.2760, and 1.2800.
Support- 1.2600, 1.2550, and 1.2500.
It is good to sell on rallies around 1.26980-70 with SL around 1.2760 for a TP of 1.2500.
