USDCAD broke below 1.2623 support and extended its downside movement from 1.2920 to as low as 1.2556. Further decline is still possible and next target would be at 1.2433.

Near-term resistance is at the falling trend line on the 4-hour chart. Only a clear break above the trend line resistance could indicate that the downtrend is complete, then further rally to 1.2800 area could be seen.