Last week bounce from the big psychological number 1.3000 and more importantly challenging again the 1.3300 resistance level has open up the door for the USDCAD to retest the big round number 1.3500. The weekly close above 1.3300 is constructive for our bullish case, however early in the week we can see a retest of the 1.3250 as the stochastic indicator is already in overbought conditions.
We’ll need to see a retracement to allow for the stochastic indicator to reset before more upside to be seen. We should see a smooth rally as we don’t have much resistance until the psychological figure 1.3500.
After recent BOC interest rate decision to hold the rates and the growth revision to the downside has motivated the investors to sell the Canadian Dollar and its part of the reason why we have seen the rally in USDCAD. The Canadian economic calendar looks mild and we can expect the current market driver to continue to push USDCAD higher in the coming week.
USDCAD Weekly Forex Forecast – 24th to 28th Oct 2016 – BULLISH
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