FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

USDCAD pared most of its gains made the previous week and closed well above 1.3000 on the hawkish stance from Fed Chairman Powell. The central bank chief said that Fed to continue its aggressive rate hikes to tackle inflation. US Personal consumption expenditure rose 0.1% in Jul compared to a forecast of 0.20%. Technically in the 4-Hour chart, the pair is holding above the short-term( 21- EMA),  55- EMA, and the long-term moving average of 200 EMA (1.29096). Any jump above 1.3060 confirms a bullish continuation. A jump to 1.3080/1.3145/1.3220 is possible. USDCAD hits a high of 1.30759 and is currently trading around 1.30672.

WTI crude oil is trading higher for the second consecutive week. Any breach above $96 confirms further bullishness.

The near-term support is around 1.3020, any breach below targets 1.3000/12965/1.2900/1.2870.

Indicators (4 Hour chart)

CCI (50)- Bullish

ADX- Bullish

It is good to buy on dips around 1.3048-50 with SL around 1.300 for TP of 1.3150.