USDCAD remains in a bearish trend making lower lows and lower highs. Price is inside a downward sloping channel and as long as price is below 1.2630 bears will remain in control of the trend.
USDCAD is trying to form a base and bounce higher. The RSI is positively sloped making higher highs and higher lows. The RSI is far from overbought or oversold levels. The RSI has provided a first bullish divergence signal in the 4 hour chart. This justifies a bounce towards the upper channel boundary. This is a warning that the downtrend might be close to its end. This is not a reversal signal, only a warning that the bearish trend is weakening. If price breaks above 1.2530 I would expect to see more upside in USDCAD at least towards 1.2630.