The USDCAD has retraced back some of the previous losses but it only managed to post a very weak close above the big psychological number 1.2500. The inability to post a decisive close above the round number 1.2500 can send the USDCAD in consolidation mode. Now the key support level remains last swing low 1.2354 which needs to hold for the bullish case to remain intact.
The stochastic indicator is in neutral position not showing any signs of extreme sentiment in the market. The first intraday support comes at 1.2430 from where a reaction higher can be seen while on the upside last week high 1.2589 can open up the door for more gains if broken. The Canadian economic calendar will bring the BOC interest rate decision which is the highlight risk event for the Canadian Dollar. The BOC is expected to keep the interest rates policy unchanged but the BOC rhetoric will be the one to drive the USDCAD exchange rate.
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USDCAD Weekly Forex Forecast – 15th to 19th Jan 2018
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