The USDCAD has bounced after a very long bearish trend that reached some levels of exhaustion. It remains to be seen if the current retracement has more legs or not. The weekly close above the big round number 1.2500 can indicate that the bulls are now in control. The stochastic indicator might also suggest that we can see a retest of 1.2500 for one more time since we’re in overbought territory.
The first level of support comes at 1.2570 and only a break and a close below this level will open up the door for a retest of 1.2500. On the upside, the first level of resistance comes in at 1.2770 followed by 1.2850 but it’s unlikely that USDCAD will retrace that far as the bearish trend remains strong. The Canadian economic calendar is empty with no major risk events that can impact the USDCAD volatility. Look for the exchange rate to be driven mainly by technical levels.
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USDCAD Weekly Forex Forecast – 7th to 11th Aug 2017
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