FxWirePro- USDCAD daily outlook

Significant Support - 1.2600

USDCAD showed a follow-through selling after the hawkish BOC rate hike. The central bank hiked rates by 50 bpbs and said clearly that it will take action if inflation surged further. The jump in crude oil prices on renewed sanctions by Europe on Russia. Markets eye US NFP jobs data and Biden's speech for further direction.  According to the Fed watch tool, the probability for a 50 bpbs rate hike in June has increased to 99.30% from 93.30% a week ago. USDCAD hits an intraday high of 1.25613 and currently trading around 1.25622.

Technical:

USDCAD is holding below short-term (21 EMA), medium-term (55 EMA), and long-term ( 200 MA) in the 4-Hour chart.

ADX- Bearish

CCI (50) below zero line in the daily chart.

Resistance to be watched- 1.2600, 1.2660, and 1.2700.

Support- 1.2550, 1.2500, and 1.2450.                                                                                                            

It is good to sell on rallies around 1.2600 with SL around 1.2650 for a TP of 1.2500.