The USDCAD has made another decisive break on the upside, but the bulls haven’t been able to break above the key resistance level 1.3225. The weekly close below the resistance level suggests that the current rally can see a pause next week, unless we get a daily break and close above the 1.3225, which will open up the door for the bulls to have another chance to challenge the major resistance level 1.3381. The stochastic indicator is in overbought territory showing that the bulls are overstretched and we might see a pullback early in the week.
The first level of support comes at the intraday level 1.3070, but the big psychological number 1.3000 remains the line in the sand. There are not many things going on the Canadian economic calendar that can disrupt the volatility. In this regard, we should expect a more technical driven market and for the USD/CAD exchange rate to be more sensitive to the support and resistance levels.
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