The US dollar continues to make up lost ground against the Canadian dollar, as oil prices remain pressured at the start of the trading week. The USDCAD pair has activated an inverted head and shoulders pattern, after breaking above the 1.2570 resistance level. According to the overall size of the bullish reversal pattern, the USDCAD pair could be headed towards the 1.2740 level.
The USDCAD pair is only bullish while trading above the 1.2570 level, key resistance is found at the 1.2650 and the 1.2740 levels.
If the USDCAD pair trades below the 1.2570 level, sellers may test the 1.2500 and 1.2450 levels.
