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FxWirePro –USDCAD Daily Outlook

Intraday bias - Bullish

 

USDCAD gained more than 300 pips in the past four days on board-based US dollar buying. US CPI came at 8.6% in May compared to a forecast of  8.3%, the largest YOY increase in 40 years. Surging Inflation has increased the chance of aggressive rate hike. Technically in the 4-hour chart, the pair is holding above the short-term (21- and 55 EMA) and long-term moving average of 200 MA (1.2788). Any close below that level of 1.2780 confirms a bearish trend. A dip to 1.2730/1.2680 is possible.  USDCAD hits an intraday low of 1.28366 and is currently trading around 1.28444.

 

The near-term resistance is around 1.28650, any breach below targets 1.2900/1.29471.

 

Indicators (4- Hour chart)

 

CCI (50)- Bullish

 

ADX- Bullish

 

It is good to buy on dips around 1.28000 with SL around 1.2760 for TP of 1.2900.

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