The US dollar is vulnerable to a strong pullback against the Canadian dollar as bearish momentum price divergence has formed on multiple time frame during the recent run higher. The bearish momentum price divergence now extends down to the 1.2350 support area. The April 2021 monthly swing-high around the 1.2650 level offers the strongest form of upcoming resistance for the USDCAD pair.
The USDCAD pair is only bullish while trading above the 1.2350 level, key resistance is found at the 1.2500 and the 1.2650 levels.
If the USDCAD pair trades below the 1.2350 level, sellers may test the 1.2280 and 1.2200 levels.
