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USDCAD is trading at 1.2590 and has formed an upward sloping wedge pattern where price is making new higher highs but soon turns lower. Price is about to break this formation downwards and this will lead to a pull back towards 1.25.
Red rectangle -target if wedge pattern is broken downwards
USDCAD is making higher highs and higher lows. However a break below 1.2585-1.2580 will lead to more weakness and we see the 1.25 area as the most probable level to be reached. Price formation looks like a short-term top is about to be formed and that is why bulls need to be very cautious.
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