I think you're right about the USDCAD bottoming out, but I think we could be in for more consolidation before it breaks out topside. A 4 (?) year downtrend doesn't just turn around and go the other way that quickly IMHO. Just the same, I would consider taking a long on a break of 1.1235 hehe.
As for the fundamentals, oil is Canada's main export (i think) and therefore the CAD is positively correlated to the price of oil. Since oil has corrected quite a bit we are seeing USD strength against the CAD. However, I think I read somewhere that OPEC will not allow oil to fall below 60, so we may have limited upside on USDCAD.
Don't take my word for it though, I'm no expert.
As for the fundamentals, oil is Canada's main export (i think) and therefore the CAD is positively correlated to the price of oil. Since oil has corrected quite a bit we are seeing USD strength against the CAD. However, I think I read somewhere that OPEC will not allow oil to fall below 60, so we may have limited upside on USDCAD.
Don't take my word for it though, I'm no expert.