FxWirePro- USDCAD daily outlook

Significant Support - 1.2650

USDCAD continues to trade lower despite weak Canadian GDP. The Canadian economic growth slumped to a 3.1%  annualized rate in the first quarter compared to a forecast of 3%. The household income of Canadian people surged to 40 years high, and the savings rate improved. According to the Fed watch tool, the probability for a 50 bpbs rate hike in June has increased to 96.8% from 94.9% a week ago. USDCAD hits an intraday high of 1.26526 and currently trading around 1.26552.

Markets eye Chicago PMI and CB consumer confidence for further movement.

Technical:

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

ADX- bearish

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

Resistance to be watched- 1.2700, 1.2760, and 1.2800.

Support- 1.2650, 1.2600, 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.