The Canadian dollar is very light on news, with only GDP m/m likely to have any major input on the single currency. Forecast at 0.1% it is hardly setting the world alight but a reading below -0.1% should see some extra short-covering on the Canadian Futures to help support USD/CAD and maybe even see it through 1.081 resistance. However this data set along is not likely to be the final decider.
The US dominates the week with tradable news releases and with a string looking USD Index and bullish technicals across most major pairs then I favour the upside to continue with USD, albeit modest pullbacks.
At time of writing USD/CAD has stalled below the 200-day MA with the 50-day close by at 1.0789 and a likely support area in the event of any retracement. Of course if we see enough data form the US fall short then we must expect a deeper retracement, but at this stage I would expect 1.076 to hold a support upon any initial test. Should the US have particularly poor data then we can reconsider 1.07 (or the broken bearish trendline from '12 highs) but if you notice that last week’s sideways trading failed to reach this key level then I suspect this is an outside scenario and for price to break above the 200-day MA before targeting 1.085 and 1.089.