The US dollar is at risk of further losses against the Canadian dollar currency as the pair starts to form a massive head and shoulders pattern on the lower time frames. The mentioned bearish pattern will be activated if sellers can move the price below neckline support, around the 1.2300 level. According to the size of the pattern the USDCAD pair could be preparing for a 200 point price drop.
The USDCAD pair is only bullish while trading above the 1.2300 level, key resistance is found at the 1.2400 and the 1.2485 levels.
If the USDCAD pair trades below the 1.2300 level, sellers may test the 1.2250 and 1.2100 levels.
