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Yes, the needle would point perpendicular to the wire, and parallels to the magnetic lines of the wire.

Another answer The above answer would be correct IF you were dealing with a DC circuit AND there was a load on the circuit, but house wiring uses Alternating Current, and the compass needle would attempt to reverse directions at the rate of 60 cycles per second. Effectively, the needle would simply act strange when it's near house wiring, IF there is a current load on the wire.

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To add to that, use a proper cable-locator, not a compass.

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