The USDCAD technical pattern has turned bearish after two consecutive bearish weekly closes and it seems more likely to expect follow through to the downside. Even though we have a bearish sequence, the Stochastic indicator is in an oversold condition which signals a potential bounce early in the week and we can see a retest of the 1.3260 now resistance level. To the downside we have the first level of support at 1.3100, but more importantly the 1.3000 big psychological level. There are no major risk events that can disrupt the market volatility for the Canadian dollar except the BOC Governor Poloz speech which is due to hold a press conference about the Financial System Review in Ottawa. Traders need to also pay attention to the Fed interest rate decision on Wednesday which is not only just the last Fed meeting of the year but also is considered to be one of the last major risk events of the year. The Fed is expected to raise rates for the second time since the financial crisis of 2007 but it remains to be seen how much of it is already priced in. Previous USDCAD Weekly Forex Forecast  

USDCAD Weekly Forex Forecast - 12th to 16th Dec 2016 - Bearish