The USDCAD has broken outside of a two weeks range, which can signal a change in the direction of the trend. We’re still trading above the big psychological number 1.3500 but we really have a very weak close above it. Since the stochastic indicator is already in oversold territory we can expect a bounce from here so the stochastic indicator can reset. On the upside the first level of resistance only comes at 1.3550 and only a close above 1.3600 can signal that the recent sell-off was just a correction. To the downside the first level of support comes at 1.3400, however, we can also note as intraday support the 1.3470 level.
The Canadian economic calendar looks busy with big risk events scheduled on the docket. On Wednesday we have the BOC interest rate decision. The market consensus is that the BOC will keep its interest rate policy unchanged at record low of 0.5%. No rate hike is expected until 2018.
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USDCAD Weekly Forex Forecast – 22nd to 26th May 2017
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