The US dollar has broken sharply to the downside against the Canadian dollar after the pair finally staged a bearish breakout under a well-defined broadening wedge pattern. Bears may sell any rallies back towards yesterday’s breakout area, around the 1.2470 region. In terms of short-term bearish targets, the USDCAD pair could easily decline towards the 1.2300 to 1.2280 support area.
The USDCAD pair is only bullish while trading above the 1.2470 level, key resistance is found at the 1.2510 and the 1.2550 levels. If the USDCAD pair trades below the 1.2470 level, sellers may test the 1.2365 and 1.2300 levels.