The technical break and the weekly close above the 1.3250 key resistance has open up the door for a retest of the big round number 1.3500 in the coming week. We should expect pullbacks to be shallow until we reach our target. To the downside, we have the 1.3254 previous resistance now turning support which was also the upper limit of our previous range. A break below this level should find only limited selling pressure as the 1.3200 is a strong support. The reason why we believe this breakout is genuine is because it comes with Stochastic divergence and in order to erase this divergence we need to see more follow through. Oil which is strongly inverse correlated with USD/CAD is also showing signs of exhaustions and looks like rolling over which supports the bullish case for USD/CAD. Only a break and a daily close below 1.3200 should invalidate the bullish case and reinstate the USD/CAD trading range. The Canadian economic calendar looks light and we should expect USD/CAD to be driven mostly based on the technical levels rather than any economic or news report. Looking at the trendline and stochastic, we feel that USDCAD will have a bullish week ahead.

USDCAD Weekly Forex Forecast - 10th to 14th Oct 2016 - BULLISH