Technically speaking, even though USD/CAD had a marginal weekly close above the big psychological number 1.3000 this is a very weak close. However, we can still see, in the beginning of the week, an attempt to break higher towards the next minor resistance area at 1.3075 which should quickly fade away. This last push higher, it might or it might not happen as it depends on how much inertia the USD bullish momentum has. Friday’s rally has left behind huge gaps in price or you can call them liquidity gaps which in the majority of the cases are filled and this is encouraging for our bearish case. The prospects that USD/CAD, in the week ahead, will try to fill in the last week price ranges increase considerably as 200-day EMA which comes near the big figure 1.3000 provides a strong resistance level. Canada’s GDP growth figures that are scheduled on Wednesday is the only major event risk that can disrupt the volatility. Latest figures have shown the Canadian economy contracting by -0.6%, a decline mostly caused by the Alberta wildfires. The general consensus sees Canada GDP expanding by 0.5% in August which is another factor in support of our bearish USD/CAD forecast.

USDCAD Weekly Forex Forecast - 29th Aug to 2nd Sept 2016 - BEARISH