USDCAD looks set for a rebound

The USDCAD downtrend is running out of steam as technical indicators are showing bullish divergences on a short term basis. A falling wedge pattern has developed which has usually bullish implications with in this case a theoretical target at 1.2790. On a broader time frame, 1.265 is a key support area given its previous top and 38.2% Fib retracement while key Canadian economic data tomorrow might be a catalyst for further upside.