The US dollar has tumbled against the Canadian dollar, as the Bank of Canada became the first major central bank to start to taper QE. Lower time frame analysis shows that the USDCAD pair will activate a broadening wedge pattern to the downside if the price moves below the 1.2470 level. According to the overall size of the pattern the USDCAD pair could be headed towards the 1.2300 level.
The USDCAD pair is only bullish while trading above the 1.2470 level, key resistance is found at the 1.2520 and the 1.2540 levels.
If the USDCAD pair trades below the 1.2470 level, sellers may test the 1.2430 and 1.2365 levels.
