Fundamentals:- After the CPI readings from Canada last week I am expecting a continuation of this turn around. As the currency is commodity linked to WTI crude, which was the main driver in strength for the Canadian dollar last week, The WTI price seems to be lacking any more upward drive. Also the US is still expected to raise rates further as the average hourly increases even though the NFP figures where a little lack luster.
Technicals:- The breakout last week came through nicely but as we reverse on that trend we expect to see the neckline retested as resistance. If it breaks we could see a retest of the shoulders and the head. Check out the linked chart to see the pattern. and visit the main website at BOAFX to get the full analysis