USDCAD Neckline break
The US dollar has continued to decline against the Canadian dollar, due to a strong early-week sell-off in the greenback against most major currencies. The USDCAD pair has broken below the neckline of a head and shoulders pattern, which is a warning of a decline towards the 1.2440 area. Bearish MACD negative price divergence is also a warning of losses and extends down towards 1.2470.
The USDCAD pair is only bullish while trading above the 1.2570 level, key resistance is found at the 1.2600 and the 1.2640 levels.
If the USDCAD pair trades below the 1.2570 level, sellers may test the 1.2470 and 1.2440 levels.