USDCAD’s bounce from 1.2061 extended to as high as 1.2390. Further rally is still possible next week and next target would be at the top trend line of the price channel on the daily chart now at 1.2490. As long as the channel resistance holds, the bounce could be treated as consolidation of the downtrend from 1.3793, another fall is still possible after the consolidation. Support is at 1.2061, a breakdown below this level could trigger another fall towards 1.1600. On the upside, a clear break above the channel resistance could indicate that the downtrend had completed at 1.2061 already, then the pair would find next resistance level at 1.2778.
