The US dollar is attempting to recover higher against the Canadian dollar after finding strong technical support around the 1.2045 level. Lower time frame analysis shows that bullish MACD divergence has formed and extends towards the 1.2200 resistance area. The overall price trend remains bearish so traders may attempt to sell into any potential price rally towards the 1.2250 level.
The USDCAD pair is only bullish while trading above the 1.2250 level, key resistance is found at the 1.2320 and the 1.2350 levels.
If the USDCAD pair trades below the 1.2250 level, sellers may test the 1.2130 and 1.2045 levels.
