The Canadian dollar has picked up a little support on Monday. Nonetheless, economists at Scotiabank view this move as a mere correction and believe that the 1.2780 zone is likely to remain a very sensitive technical point for funds in the next few days. 

USD/CAD losses are possibly corrective in nature

“Losses are possibly corrective in nature only and the broader pattern of trade that has developed through late January warns of a potential inverse Head & Shoulders pattern which risks pushing USD/CAD significantly higher on a break above the neckline trigger at 1.2780 currently.”

“USD/CAD losses below intraday support at 1.2715 will help mitigate upward pressure on the pair to some extent.”