USD/CAD a tactical buy

USD/CAD looks like a tactical buy in my opinion, with Janet Yellen speaking twice this week and oil prices once again looking vulnerable.

Source: Bloomberg

Traders could look to buy the pair at market C$1.2540, keeping position sizing small and adding to the trade on a break of the January downtrend at C$1.2600 and again on a break of the 11 February high of C$1.2698. There is the potential for a further move to the 2009 high, just above C$1.3000

Stops could be placed around C$1.2340, just under the 3 February low and a break here could see the pair squeeze down to the C$1.2000 area where better support is seen.

USD/CAD chart

USD/CAD chart
Source: IG charts

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