The US dollar is continuing to break down against the Canadian dollar, as a bearish price pattern is projecting further losses in the pair. The four-hour time frame is showing that a head and shoulders pattern has been activated with a 90 point downside target. Watch out for further losses towards the 1.2170 support area while the USDCAD pair trades beneath the 1.2270 resistance area.
The USDCAD pair is only bullish while trading above the 1.2300 level, key resistance is found at the 1.2340 and the 1.2360 levels.
If the USDCAD pair trades below the 1.2340 level, sellers may test the 1.2220 and 1.2170 levels.
