The USDCAD is still trading in a very wide range between resistance 1.2916 and the top of the range and support level 1.2663 and the bottom of the range. We’re now in the process to retest the bottom of the range and if history is to be repeated we should expect another bounce. However, only a daily close below 1.2663 can signal that we’re ready to leave the consolidation and trend to the downside.
The stochastic indicator is in oversold conditions which can signal that a bounce has a higher probability than a break of support. On the upside, the next important level is the middle of the range 1.2784 where we can expect some kind of reaction. The Canadian economic calendar doesn’t have anything to offer us in terms of risk events. Monday is the first Christmas day and the markets will be closed while the rest of the week we should expect a very quiet market.
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USDCAD Weekly Forex Forecast – 25th to 29th Dec 2017
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