The USDCAD is making lower highs and lower lows suggesting we’re in a bearish price structure, however, we need a break and a close below 1.3280 support level for more weakness to be seen. On the upside, we have 1.3414 resistance level, but what is most critical is the downward trendline which should cap any rally. A break to the downside should expose the 1.3212 support level, but early in the week, we can expect a retest of the downward trendline because the stochastic indicator in oversold territory. Any extension below 1.3200 could produce a bounce as well.
The Canadian economic calendar Monday will bring the BOC Business Outlook survey and Friday the Unemployment figures. The Canadian unemployment rate dropped 0.2% to 6.6% after it added 15k new jobs in February. On Monday we also have a proxy event risk when the US ISM Manufacturing figures will be released and on Wednesday traders should keep an eye on the Canadian Trade Balance figures.
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USDCAD Weekly Forex Forecast – 3rd to 7th April 2017
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