The US dollar looks increasingly bearish against the Canadian dollar, as the pair has failed to stage a recovery after Wednesday’s steep price drop. The USDCAD pair is likely to take another leg lower if the price moves under an ascending triangle pattern, around the 1.2480 level. Traders may look to sell any rallies back towards the 1.2520 to 1.2520 price region in expectation of further weakness.
The USDCAD pair is only bullish while trading above the 1.2480 level, key resistance is found at the 1.2525 and the 1.2550 levels. If the USDCAD pair trades below the 1.2480 level, sellers may test the 1.2430 and 1.2365 levels.