The US dollar is attempting to hold onto last week gains against the Canadian dollar, following the powerful recovery in the pair from just below the 1.2500 level. The four-hour time frame shows that a breakout from an extremely large falling price channel will take place if the USDCAD pair moves above the 1.2700 level. Failure to move past the 1.2700 resistance level in early week trading could result in a technical test of the 1.2600 support level.
The USDCAD pair is only bullish while trading above the 1.2700 level, key resistance is found at the 1.2840 and the 1.2980 levels.
If the USDCAD pair trades below the 1.2700 level, sellers may test the 1.2630 and 1.2600 levels.
