The US dollar is gaining strength against the Canadian dollar again, following a sharp downturn in oil prices and a minor recovery in the greenback. The USDCAD pair has moved above the neckline of a head and shoulders pattern, which holds 120 points of downside potential. If bears can move the price above the 1.2200 level then the bearish pattern will be invalidated a strong recovery may begin.
The USDCAD pair is only bullish while trading above the 1.2200 level, key resistance is found at the 1.2250 and the 1.2300 levels.
If the USDCAD pair trades below the 1.2200 level, sellers may test the 1.2080 and 1.2015 levels.
