The USDCAD has broken for a brief period of time below the big round number 1.2500 but we managed to regain that level and close above it on a weekly basis. However the broad base dollar weakness may suggest that we shouldn’t but too much weight on the bull side. A break and a daily close below 1.2500 will validate the bearish view and we could see last week low 1.2460 challenged again.
A break below 1.2460 will open the door for a retest of our next important support level 1.2350. On the upside, the 1.2550 is an important resistance level and any rally above it should fade away unless we post a daily close above it. The stochastic indicator is in neutral territory and doesn’t say much about the state of the market. Monday, we have the Family day holiday in Canada so expect low trading activity on this pair. The only notable risk event is Friday’s CPI inflation figures and Wednesday’s FOMC minutes.
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USDCAD Weekly Forex Forecast – 19th to 23rd Feb 2018
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