The USDCAD has finally managed to turn to the down side but this move still looks corrective in nature as the bullish trend started since May 2016 looks incomplete. Last week low at 1.3254 should provide a good support for now, while to the upside we have 1.3400 as first notable resistance. A break above 1.3400 will open up the door and expose the 1.3500 big psychological number.
The stochastic indicator is posting a hidden bullish divergence which supports the bullish case for USDCAD. The Canadian economic calendar looks busy and on Wednesday we have the first major risk event for the Canadian dollar when the BOC interest rate decision is scheduled. The BOC is expected to keep rates unchanged and they are seen now more inclined to cut rates if the USA engage in protectionist policies and this gives us a bearish outlook for the Canadian dollar. On Friday some housing market figures will put the USDCAD in the spotlight.
Previous USDCAD Weekly Forex Forecast
USDCAD Weekly Forex Forecast – 5th to 9th Dec 2016 – Bearish
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