The RSI on the daily chart is below 50 and this is a sign of a medium-term downtrend. Moreover, Canada's inflation rate rose to its highest level since 2011 last month, as higher prices for airplane tickets, tourism and gasoline pushed the rate to three per cent. That's up from 2.5 per cent in June, which was already the highest level in more than six years.
According to our technical and fundamental analysis, the USD/CAD pair might fall in order to form a double bottom at 1.2550, in the long term.
The most important data of this week:
US GDP QoQ (+4.0% expectation); (+4.1% previous)
Canada Current Account (-15.45bl expectation); (-19.50bl previous)
Canada GDP MoM (+0.1% expectation); (+0.5% previous)
YoY (+2.3% expectation); (+2.6% previous)