The USDCAD has finally managed to find a bottom at the 1.2413 level, but since the dominant trend is still bearish, we should treat any rally simply as a retracement. We can expect more consolidation in the coming weeks as the bearish trend needs to catch his breath. The first major level of resistance only comes at 1.2850. On the downside the big round number 1.2500 should act as support and it should also define the short-term price action. The Canadian economic calendar looks mild with the only notable risk event being the Unemployment figure scheduled on Friday. The Canadian unemployment rate dropped to 6.5%, which is a sign of improvement in the labor market. On Friday we also have the NFP report, which is the main risk event of the week. The payroll numbers are expected to cool off after posting 222k new jobs in June. The market consensus is for only 185k new jobs added in July and the unemployment rate is expected to come flat at 4.4%. Previous USDCAD Weekly Forex Forecast

USDCAD Weekly Forex Forecast - 31st July to 4th Aug 2017