The Canadian dollar has entered into a period of ranging activity with no clear direction. We can expect lots of false breakouts during this type of environment. As long as we trade below the big psychological number 1.3000 but more importantly below the swing high 1.3125 we can expect more consolidation in the weeks ahead. However, a break above 1.3125 can open the door for more USDCAD strength.
The stochastic indicator isn’t showing any extreme readings which are reason enough to expect more range activity. On the downside, the first level of support comes at 1.2730, but May low 1.2528 represents a more important support. A break below 1.2500 can open the door for USDCAD to challenge again the current yearly low 1.2248 level. NAFTA trade talks currently remain the biggest risk catalysts for the Canadian dollar. However, it is expected that once the market has more clarity for a NAFTA pact then the BOC can pursue normalizing interest rates.
Previous USDJPY Monthly and Weekly Forex Forecast
USDCAD Monthly Forex Forecast for June 2018
Other Analysis Today