The USDCAD technical pattern took a clear stance towards the bear case, however the fact that we couldn’t broke below the 1.3000 big psychological number can signal a change in the sentiment. Only a break and a close below 1.3000 can open the door for more downside and ultimately a retest of 1.2800 daily support level.
The first major resistance comes in only at 1.3300, but we also have intraday resistance at 1.3150. We also need time to reverse the strong sell-off started since the beginning of the year and in this regard, it makes sense to expect further consolidation. The Canadian economic calendar will bring on Wednesday the BOC interest rate decision which can impact the USDCAD volatility. The BOC is expected to hold monetary policy on hold and it’s unlikely they will follow the Fed and hike rates.
Previous USDCAD Weekly Forex Forecast
USDCAD Weekly Forex Forecast – 16th to 20th Jan 2017 – Bearish
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