USD/CAD has been in a bearish non-volatile trend since the break below 1.3600 level. Currently, the pair is undergoing a short-term correction which can lead to a temporary bullish move in this pair. Today, Canada released an important GDP report which is expected to be show a 0.3% growth from 0.0% previously. As the data is the broadest measure of economic activity and the primary gauge of economy's health, a good amount of volatility is expected to hit the pair today during the news release. On the USD side, today FOMC Member Kaplan is going to speak today about key interest rates and future monetary policies, he is expected to be more hawkish than usually which may lead to a further gain on the USD today. Moreover, Chicago PMI report is also due later today which is expected to show a decreased value at 57.0, down from 58.3 previously. Moreover, Pending Home Sales report is expected to show a positive change of 0.7%, much stronger than -0.8% earlier. To sum up, amid a batch of first-tier economic data from Canada and the US, the market is expected to be very volatile today. Traders will find out some signals of a further dynamic in this pair after the market absorbs all the news.
Now let us look at the technical chart. The price is currently residing in a medium-term corrective structure after the break below 1.3600 level. Currently the price is below short-term resistance of 1.3540 and as the price remains below this level in a bearish move. The first downward target of 1.3260 is expected.
