FxWirePro- USDCAD Daily Outlook

FxWirePro- USDCAD Daily Outlook

Intraday bias - Neutral

USDCAD lost more than 100 pips after upbeat Canadian jobs data. The economy has added 150000 jobs in Jan, well above the forecast of 15000. The unemployment rate dropped to 5% vs an estimate of 5.1%. It hits a low of  1.33377 and is currently trading around 1.33560

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb declined to 90.8% from 96.70% a day ago.

  The US 10-year yield trades higher for the third consecutive week. Any break and close above 3.69% confirm minor bullishness. The yield spread between 10 and 2-year widened to -82 basis points from -79.40 bpbs.

Technically in the 4-Hour chart, the pair is holding below the short-term( 21- EMA), 55 EMA, and the long-term moving average of 1.34233 (200- EMA). Any violation below 1.3300 confirms further bearishness. A dip to 1.3260/1.3220 is possible.

WTI crude oil hits a two-week high as Russia plans to cut output. Any daily close above $80 will push oil prices up to $85.  

The near-term resistance is around 1.3380 and any breach above targets is 1.3435/1.3470/1.3520.

Indicators (4-Hour chart)

CCI (50)- Bearish

ADX- Bearish

It is good to buy on dips around 1.3350 with SL around 1.3300 for a TP of 1.3525.

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