The USDCAD technical pattern remains in a bullish sequence but last week’s failure to make a decisive break towards new highs warns us that we should expect more range ahead. The low level of activity due to the Christmas holidays will be felt across the whole Forex spectrum. The weekly close above the 1.3500 big psychological number is constructive for the bullish case, however, we can’t rule out a quick retest of the 1.3416 intraday support level. The stochastic indicator is already in extreme overbought conditions which is indicative of at least a pause in the trend but if enough momentum can be build up we can see a break above 1.3588 key swing high and resistance level. The general premise is still for further range so any breakout should quickly fade off. In term of major risk events, there is nothing on the Forex calendar that can disturb the market volatility. The week ahead should be very quiet as it’s the last trading week of the year and the majority of market participants are already out of the market. Previous USDCAD Weekly Forex Forecast

USDCAD Weekly Forex Forecast - 19th to 23rd Dec 2016 - Bullish