We saw the USD stall in the past couple of sessions. USD/JPY for example fell sharply from around 111.40 to almost 109. However, today's release of the US ISM Manufacturing data helped the greenback recover. Also, oil price is holding under 50. The combination of these 2 things should give the USD/CAD a boost. ISM Manufacturing PMI(source: forexfactory.com)The index came in at 51.3 for May, which was higher than the previous month's reading of 50.8. It also beat expectations which was for a slight drop off to 50.5. We now saw 3 straight months where the index was above 50, which is a sign that although tepid, there is expansion in the manufacturing sector after slowing down at the turn of the year and into Q1 2016. Good data like this would support the possibility of a June Fed rate hike. This possibility has been recently feeding USD strength, and it looks like it wants to continue today after a couple sessions of giving back gains, at least in the case of USD/CAD. USD/CAD 1H Chart 6/1 (click to enlarge)Here's the thing. USD/CAD was rallying even before the manufacturing data. It actually looks like the pair slowed down after the manufacturing data. What really drove USD/CAD up ahead of the release was likely the dip in oil prices at the end of yesterday, which created a double top in WTI crude oil.We can see that USD/CAD also came up from a technical support around 1.3050 despite a brief break - there was a previous support pivot and a rising speedline. From a technical standpoint, oil does have an intra-session recovery risk and the USD/CAD could pull back today as well. However, I think the fundamental environment as well as the technical picture for USD/CAD is still bullish, and I would anticipate continuation towards the 1.3180-1.32 area. This means, if we do see a pullback in USD/CAD, I would consider buying with a stop below 1.3040.