• USD/CAD retreated from a two week high on Monday as traders shifted focus to a busy slate of key U.S. economic data this week for signals on the monetary policy outlook..
• Markets are largely brushing aside developments in Venezuela after a U.S. raid resulted in the capture of President Nicolas Maduro.
• The closely watched U.S. monthly jobs report due Friday will be crucial in shaping monetary policy expectations, a key driver for the dollar.
•On the data front, U.S. manufacturing contracted more than expected in December, extending its downturn to a tenth consecutive month..
• U.S. manufacturing shrank more than expected in December, marking a tenth straight month of contraction.
• Immediate resistance is located at 1.3799 (50%fib), any close above will push the pair towards 1.3891(61.8%fib).
• Support is seen at 1.3700(38.2%fib) and break below could take the pair towards 13624(Lower BB).
Recommendation: Good to buy around 1.3750, with stop loss of 1.3650 and target price of 1.3820
