The US dollar remains under heavy downside pressure against the Canadian dollar, as buyers fail to show up above the 1.2300 level. Looking at the medium-term technical the USDCAD pair is trapped inside a large falling price channel, between the 1.2600 and 1.2000 levels. Sustained weakness under the 1.2360 level this week and the USDCAD could cause the pair to fall towards the bottom of the price channel.
The USDCAD pair is only bullish while trading above the 1.2365 level, key resistance is found at the 1.2470 and the 1.2550 levels. If the USDCAD pair trades below the 1.2365 level, sellers may test the 1.2200 and 1.2000 levels.