The US dollar is in recovery mode against the Canadian dollar, as bears fail to capitalize on the ongoing downtrend below the 1.2300 level. Due to the strong bearish trend traders may choose to sell any meaningful price rallies in the USDCAD pair this month. Lower time frame analysis highlight that the 1.2360 and 1.2380 resistance zones are potential swing-sell areas for USDCAD bears.
The USDCAD pair is only bullish while trading above the 1.2340 level, key resistance is found at the 1.2360 and the 1.2380 levels. If the USDCAD pair trades below the 1.2340 level, sellers may test the 1.2280 and 1.2200 levels.