At the end of the week we present the following technical forecast for the US dollar vs Canadian dollar exchange rate.

Looking past the data we note that technical setup in the CAD exchange rate complex remains firmly biased towards further losses against the US dollar.

Commenting on the outlook for the Canadian dollar, a note issued by Gainsy FX shows that despite the gains and positive technical bias, adding to further USD/CAD gains could be dangerous:

"The pair recovered sharply ahead of 1.0900 mark and rose nearly 200 pips in the past few hours before stalls at 1.1093, which acted as the previous week's top. However, the main resistance remains located at 1.1120/25 which represents the monthly highs and the higher border of the previous consolidation range. We plan to enter a long trade in case of taking out this barrier."

"The USD/CAD cracked the projected resistance of 1.1125 and rose to print a fresh 3-week high at 1.1171. As we dig higher, the main challenge remains located at the yearly high of 1.1224, which is just a few pips from the pivotal resistance of 1.1230 that represents 50% Fib retracement connecting to the long term fall between 2009 high of 1.3063, down to 2011 low of 0.9405.

"It will be quiet risky to add new longs at these higher levels as the renewed reversal is not ruled out, so let's place our buy orders above 1.1230, preferably on a closing basis, and we can expect to see price rally sharply in this case."