The broad based dollar strength that we experienced during the last days of April has helped the USDCAD to recover as well. The USDCAD has started to rally from near the big psychological number 1.2500 which signals institutional buying power. However, we’re still trading within a wide trading range and in order for a bullish trend to emerge; we need to break above the current swing high 1.3125. The big psychological number 1.3000 remains the first hurdle for the bulls, however technically speaking the region from 1.2920 to 1.3000 is our major resistance level from where we can see a minor reaction before the current bullish run resumes. On the downside, we have a support level at 1.2645 but the critical level remains the last swing low 1.2530 which if broken can invalidate the bullish case scenario. On a fundamental level, the biggest threat to the Canadian dollar remains the trade threats and the NAFTA renegotiation terms which can have a negative impact in the short-term for the Canadian dollar. Previous USDJPY Monthly and Weekly Forex Forecast

USDCAD Monthly Forex Forecast for May 2018