The USDCAD continued to drift lower and while we’re still trading below the big psychological number 1.3500 more downside should be expected. Only a daily break and close above 1.3500 will signal a resumption of the bigger trend. Short-term we can expect a retest of the 1.3300 support level before to see another attempt to break higher.
The stochastic is still in neutral territory which at least in theory this should favor more the short-term trend which is bearish. Another significant level trader needs to pay a close eye is last week low 1.3386. As long as we stay above this level you should also be aware of the possibility of more ranging activity. The Canadian economic calendar has some risk events scheduled. On Wednesday, we have the Canadian GDP, which has stalled in the last months. Thursday we also have the Canadian Manufacturing PMI figures while on Friday we have the Trade balance figures.
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USDCAD Weekly Forex Forecast – 29th May to 2nd June 2017
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