The unwillingness to break on either side of the market makes USD/CAD trapped in a very complicated range. The USD/CAD wide range can be defined between 1.3280 major resistance level and 1.3000 big psychological number. As long as we remain inside this concise range anything can happen.
We’re having some conflicting signals because, on the one hand, we’re still trading above the 200-day EMA but the stochastic indicator is showing that USD/CAD is losing momentum. Only a break and close below the 1.3000 big round number will extend the sell-off to 1.2830 our next important support level.
Monday during the New York session we need to pay attention to the Bank of Canada business outlook survey, which can be the catalyst for some volatility. More importantly due to the direct relationship between Canada, which is a major oil exporter, and oil prices we can expect USD/CAD to eventually break lower if Crude Oil continues to rally.
Looking at this chart, it sure looks like USDCAD is trading within range and at the moment, it’s heading south to test support. If price bounce of support, then the range is intact and should head back north. For now, with Stochastic and price momentum pointing south, USDCAD is looking bearish for this coming week, although price is still going to be within trading range. Good luck and comment below…
USDCAD Weekly Forex Forecast – 3rd to 7th Oct 2016 – BEARISH
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