USDCAD broke above the bearish trend line on its 4-hour chart and is now facing 1.2575 resistance. As long as this level holds, the price action in the trading range between 1.2413 and 1.2575 could be treated as consolidation of the downtrend from 1.3347, and further decline towards 1.2200 is still possible after the consolidation. On the upside, a break of 1.2575 resistance will indicate that the downside movement had completed at 1.2413 already, then further rally to 1.2750 area could be seen.
