The USDCAD has managed to gain control above the key psychological number 1.3000 posting a weekly close above it. We need to break above 1.3081 intraday swings high in order to suggest that the bulls are really in control. A daily break and close above 1.3081 will put again in the spotlight the key resistance level 1.3230 from where we can expect a pause. The stochastic indicator doesn’t show any extreme overbought or oversold readings which indicate that the probabilities are in favor of more ranging activity.

On the downside, we really need a very strong daily break and close below 1.3000 to suggest a shift in the market sentiment. This will also open the door for a possible retest of the 1.2890 support level. We have few notable risk events scheduled on the Canadian economic calendar. First, we have the BOC business survey scheduled on Monday, but Friday is the main risk event in the form of the CPI inflation figures.

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