The US dollar is testing above the 1.2600 level against the Canadian dollar due to a combination of oil weakness and strength in the greenback. The USDCAD pair is now testing towards its key 200-day moving average, however, bulls have not performed a daily price close above this key technical metric. Failure to overcome the 200-day moving average could result in a technical correction back towards the 1.2480 level.
The USDCAD pair is only bullish while trading above the 1.2550 level, key resistance is found at the 1.2630 and the 1.2700 levels.
If the USDCAD pair trades below the 1.2550 level, sellers may test the 1.2510 and 1.2480 levels.