The US dollar is looking vulnerable against the Canadian dollar again, following a short lived recovery above the 1.2200 resistance level last week. The one-hour time frame is showing that a bearish head and shoulders pattern, with one-hundred points of downside potential, has formed. Sustained weakness under the neckline of the pattern, around 1.2100, could cause a drop to the 1.2000 support level.
The USDCAD pair is only bullish while trading above the 1.2080 level, key resistance is found at the 1.2250 and the 1.2300 levels.
If the USDCAD pair trades below the 1.2080 level, sellers may test the 1.2045 and 1.2000 levels.
