USDCAD is forming a sideways consolidation in a trading range between 1.2355 and 1.2590. As long as 1.2590 resistance holds, the downtrend from 1.2920 could be expected to resume and further fall towards 1.2200 area is still possible after the sideways consolidation. Near term support is at 1.2355, a breakdown below this level could signal resumption of the downtrend. On the upside, a breakout of 1.2590 will indicate that the downside movement had completed at 1.2355 already, then further rise towards 1.2920 resistance could be seen.
