USD/CAD & Canadian GDP (July): A new wave of sellers coming?
Today at 12:30 GMT will be released the Canadian GDP on a monthly basis for July, where the analysts are expecting to see a decrease to 0.3% from 0.6% (June). This reading could be a market mover, especially for the CAD pairs that were affected during the week due to OPEC meetings. During June, GDP had an expansion to 0.6%, which was a positive indicator, but it will be interesting to see the price action of an exhausted currency.
Our technical picture for USD/CAD at H4 chart is still showing a bullish bias, following the support found near 1.3051. Currently, it's facing the resistance zone of 1.3171, where a breakout higher can bring a momentum to the upside in order to test the 1.3236 level, which is above the 200 SMA. However, if data comes better than expected, then it could pullback to test the trend line that touches the lows from Thursday, around the 1.3051 level.