The USDCAD technical pattern looks quite complicated as we’re moving in a range market inside a wide consolidation zone. In the short-term last week sell-off has open the door for a retest of the 1.3000 big psychological figure from where we can expect a bounce. The first intraday support level comes near the 200 EMA at 1.3100 while to the upside; we have the 1.3250 which should act as resistance. The stochastic indicator is in an oversold condition so a retest and a bounce towards 1.3250 resistances early in the week can be expected before the bearish momentum to be seen again. The Canadian economic calendar looks quite busy and Wednesday is the first major risk event for the CAD. The BOC interest rate decision is scheduled to be released and the market consensus is for the BOE to keep the interest rates on hold. The BOC Governor Poloz had a strong stance in favor of lower interest rates for a much longer period due to external headwinds and in order to support economic growth.

USDCAD Weekly Forex Forecast - 17th to 21st Oct 2016 - BULLISH