Technical analysis
The price action surrounding the USDCAD pair looks heavily bearish and large drop below the 1.2500 level could take place anytime.
The Commodity Channel indicator on the four-hour time frame shows that significant bearish price divergence has formed from the 1.2440 level.
What the possible outcomes are
In our most likely scenario, the USDCAD pair will start to decline under the 1.2500 level at any time and potentially fall towards the 1.2250 level.
Alternatively, the USDCAD pair could reach the 1.2570 level one final time and then start to decline towards the 1.2440 support area.
Key levels
Support 1.2440 1.2250
Resistance 1.2570 1.2650
