The USDCAD technical pattern continues to be bearish despite last week’s rally. Only a break above the big psychological number 1.3500 will invalidate the bearish case. While on the long-term USDCAD is in a bullish trend in the short-term we can still see some further consolidation. The stochastic indicator is in oversold conditions which threaten the current up swing wave, however, there is still a possibility of a false breakout above 1.3387 last week’s high before we can see any meaningless retracement.
Any sell-off can be limited in time and price as right at the 1.3150 level we have an important support and above it we have 1.3220 as intraday support. The Canadian economic calendar doesn’t have any major risk event that can distort the market volatility and in this regard, we can expect a very quiet USDCAD exchange rate.
Previous USDCAD Weekly Forex Forecast
USDCAD Weekly Forex Forecast – 23rd to 27th Jan 2017 – Mildly Bearish
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