As the greenback continues to debilitate, the Canadian dollar is gaining ground following the recovery in the prices of the crude oil, Canadian manufacturing PMI came in unchanged at 55.3 while the US ISM manufacturing bettered forecasts at 58.7 vs. 57.8 expected.
On the economic calendar we are not expecting any major news from the BoC monetary policy meeting on Wednesday, though the main events will come from the US Non-farm Payrolls due on Friday that is expected to rise from 214K to 232K.
The USDCAD tried to make fresh Year highs on the course of yesterday session but failed to do so and closed near the low of the day, below the low of Friday’s creating a key reversal day. A double top pattern maybe in the making, so a break of the neckline can create major move to the downside.
On a break below previous day low at 1.1316 we may expect a downward move to 1.1232 (scenario 1) or even to a daily support at 1.1098 (scenario 2).