The USDCAD has a nice reaction to the downside, but now we’re heading right into support level 1.2400 which can produce a reaction higher. A break and a daily close below 1.2400 but more importantly a close below the 200 EMA will open up the door for more downside and a possible retest of support level 1.2250.
On the upside last week high 1.2600 remains key and as long as we stay below, we should expect more range and possibly the last week price range to get filled in. The stochastic indicator is in oversold territory and it supports the idea of a bounce. There is no major news events scheduled on the Canadian economic calendar with the exception of the CPI inflation figures and the Retail figures scheduled on Friday. Expect the USD/CAD to be more technically driven.
Previous USDCAD Weekly Forex Forecast
USDCAD Weekly Forex Forecast – 16th to 20th Oct 2017
Other Analysis Today