Buy on rebound from 1.2240 level with 1.2292 target. Stop loss = 1.2190.
Reason for the trading strategy
The April decline in retail sales in Canada by 0.1% (m/m) put pressure on the Loonie. Last Friday, the USD/CAD pair tested the level of 1.2292. However, the renewed increase in the oil prices has led to a fixing of long positions in the pair. The possibility of doubling the oil export from Iran in the second half of 2015 could put pressure on commodity currencies.