The USDCAD continued to drift lower in a very slow market and a tight range. The weekly break and close below the big psychological number is very bearish and now there is a possibility to take the current year low of 1.2410. A break and a daily close below can open up the door for more downside pressure and a retest of next important support level 1.2300.
However, as long as we stay above 1.2410, we can still see a bounce early in the week since the stochastic indicator is in an oversold condition. The first level of resistance is obviously 1.2500 followed by 1.2570. A daily break and close above can open up the door for a deeper retracement towards 1.2750.The only notable risk event on the Canadian economic calendar is the second quarter GDP reading which is on track to hit 3.7% annualized rate.
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USDCAD Weekly Forex Forecast – 28th Aug to 1st Sept 2017
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