The US dollar has tumbled to a fresh two-year low against the Canadian dollar, following the dovish FOMC policy statement and economic projections from the central bank yesterday. The USDCAD pair has invalidated a large inverted head and shoulders pattern and is vulnerable to further losses. According to the measured projection of the invalidated pattern the USDCAD pair could fall towards the 1.2200 level.
The USDCAD pair is only bullish while trading above the 1.2578 level, key resistance is found at the 1.2600 and the 1.2710 levels.
If the USDCAD pair trades below the 1.2578 level, sellers may test the 1.2340 and 1.2200 levels.