USDCAD extended its short term downtrend from 1.2778 to as low as 1.2444, facing the previous low support at 1.2413. A breakdown below this level could signal resumption of the downtrend from 1.3793 (May 5 high), then next target would be at 1.2300, followed by 1.2050. Near term resistance is at the top trend line of the price channel on the 4-hour chart. A clear break above the channel resistance could indicate that the short term downtrend is complete, then the following upside movement could bring price back to test 1.2778 resistance.
