The US dollar could be set to trade higher against the Canadian dollar currency after the pair broke above a descending wedge pattern last week. The four-hour time frame also shows that that the wedge breakout remains valid while the price trades above the 1.2120 level. USDCAD bulls may look to buy any moves back towards the 1.2120 level in expectation of a reversal back towards the 1.2200 area.
The USDCAD pair is only bullish while trading above the 1.2120 level, key resistance is found at the 1.2200 and the 1.2250 levels.
If the USDCAD pair trades below the 1.2120 level, sellers may test the 1.2090 and 1.2060 levels.
