This currency pair initially fell during the week but then found support around 1.25. This coincided with the interest rate announcement from Canada. Since then the pair has rallied for 3 consecutive days, and accelerated further due to the weak retail sales and CPI data from Canada on Friday.
Those who think that Canadian Dollar will always rally when Crude oil price goes up, should realize that the fundamentals from the economy is also equally important. We are beginning to see the weakness in Canadian economy at the moment.
It is interesting to see that the support has come before even touching the up trendline.
Trading Preference
Given the above reasons, the preference is to buy the pair. Until and unless the up trendline is broken, dips will provide value to go long on the pair.
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