The US dollar is struggling to hit new highs in the short-term against the Canadian dollar currency making the pair vulnerable to further pullbacks. The USDCAD pair could drop back towards the 1.2160 support area if sellers start to hold the price under the 1.2300 level. According to the four-hour time frame a large head and shoulders pattern remains valid while the price trades below the 1.2485 level.
The USDCAD pair is only bullish while trading above the 1.2300 level, key resistance is found at the 1.2380 and the 1.2440 levels.
If the USDCAD pair trades below the 1.2300 level, sellers may test the 1.2250 and 1.2160 levels.
