USDCAD remains in the downtrend from 1.3347, the bounce from 1.2540 could be treated as consolidation of the downtrend. Near term resistance is at the downward trend line on its 4-hour chart. As long as the trend line resistance holds, the downtrend could be expected to continue and further decline to test 1.2460 (May 2016 low) support is still possible. Key resistance is at 1.2640, only a break of this level will indicate that the downtrend had completed at 1.2540 already, then the following correction rebound could bring price into 1.2850 zone.

usdcad 4-hour chart


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