The USDCAD has another attempt to break lower and it finished the week near the lows suggesting that this move has some more room to the downside. We can’t exclude the fact that USDCAD can also try to fill in the last week price range but in order for that to happen we need any break below last week low 1.2280 to quickly fade away.
On the upside the first resistance level comes at 1.2350. A break and a daily close above 1.2350 will open the door for a much deeper correction and a possible attempt to retest the big psychological number 1.2500. The stochastic indicator is already in oversold conditions so early in the week we can expect an attempt to rally. There is no major risk events scheduled on the Canadian economic calendar. However, on Friday we have the US Non Farm Payroll figure that is the main risk event of the week. The US economy is expected to only add 175k new jobs versus 148k previous reading.
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USDCAD Weekly Forex Forecast – 29th Jan to 2nd Feb 2018
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