The US dollar is vulnerable to further losses against the Canadian dollar currency as the pair test towards critical technical resistance. The daily time frame shows that the USDCAD pair is now at the top of a massive falling wedge pattern. Failure to hold the price above the falling wedge could result in a technical pullback in the USDCAD pair towards the 1.2250 support area.
The USDCAD pair is only bullish while trading above the 1.2250 level, key resistance is found at the 1.2375 and the 1.2450 levels.
If the USDCAD pair trades below the 1.2250 level, sellers may test the 1.2200 and 1.2135 levels.
