USDCAD’s rebound from 1.2061 extended to as high as 1.2337. Further rally is still possible and next target would be at the bearish trend line on the daily chart now at 1.2470.

However, as long as the trend line resistance holds, the bounce could be treated as consolidation of the downtrend from 1.3793 (May 5 high), another fall towards 1.1800 is still possible after the consolidation.

Only a clear break above the trend line resistance could signal completion of the downtrend.