The US dollar is still on the rise against the Canadian dollar currency after yesterday’s massive upside breakout towards the 1.2500 resistance level. The daily time frame shows that bearish momentum price divergence has formed during yesterday’s advance. If the bearish divergence is reversed then the USDCAD pair could correct back towards the 1.2310 price area.
The USDCAD pair is only bullish while trading above the 1.2310 level, key resistance is found at the 1.2550 and the 1.2655 levels.
If the USDCAD pair trades below the 1.2310 level, sellers may test the 1.2250 and 1.2180 levels.
