The USDCAD was unable to break above the big round number 1.3000 and sold off quite substantially establishing a swing high in the process. We’re currently stalling at support level 1.2745 and as long as we trade above this level, we should expect last week sell off to be corrected. A break and a daily close below 1.2745 will open up the door for more bearish momentum and retest the next important support level 1.2625.
The stochastic indicator is moving up from oversold territory which means that we can see a retest of resistance level 1.2815. More importantly the 1.2920 represents a more significant resistance level where USD/CAD can stall. There are some risk events scheduled on the Canadian economic calendar. On Tuesday, Council Member Schembri is due to speak at a luncheon hosted by the Chartered Financial Analyst Society of Ottawa and the Ottawa Economics Association. Friday will bring the CPI inflation figure which is a high impact risk event.
Previous USDCAD Weekly Forex Forecast
USDCAD Weekly Forex Forecast – 14th to 18th May 2018
Other Analysis Today