USDCAD is heading to quite volatile week ahead with important data from US ( NFP, ISM, ) and CAD (GDP and ) with stated after closing the week with below 55EMA. Not to mention that on Weekly chart is also suggesting that bears might take the control over the pair for upcoming days.
With oil hovering below $40 CAD will have tough time to appreciate therefore I expect the move to be driven by depreciation of USD considering rate hike might be postponed to December.
Short term bearishness might be opportunity to pick up some pips before will take the control around 1.24 levels where I see appropriate song enter with stop loss below 1.22
I prefer conservative entries therefore I will buy around 1.27 which is mid point 382 and 500 Fib retracement. As price will approach this zone I drop to smaller time frames and will look for price action confirmations. Stop will be placed below 618 Fib around 1.214 levels.
I had these zone wide as I see aggressive traders moving in earlier around 382 zones but they have usually tighter stops while more conservative traders might prefer to waiting until the retest of 500 or 618 will take place. I see this as still valid entry that needs to be however confirmed by price action on smaller time frames and one should buy retracement.
Saying my first target is somewhere around your levels noted above so some short term buying should happen there, but it is still 500 pips lower