USD/CAD Price Analysis: Bulls meet critical daily resistance

• USD/CAD is testing an important resistance area.
• Bears are moving in with a focus on 1.2720.

USD/CAD is consolidating the recent bullish impulse as it meets an important resistance area on the weekly and daily chart as illustrated below:

USD/CAD weekly chart

The bulls have stepped in after making a 38.2% Fibonacci retracement Cleveland taking on the bears to weekly resistance.

USD/CAD daily chart

However, the bulls could be on the verge of throwing in the towel at this juncture and keen to take off some risk as the price meets both weekly and daily resistance structures near 1.2850. An imminent retracement will likely home in on 1.2710/40.