The USD/CAD pair witnessed some heavy selling during the early North American session and dived to one-week lows, around the 1.2560 region in the last hour. A sustained break below the 1.2600 confluence support was seen as a key trigger for intraday bearish traders. Sustained weakness below might have already set the stage for a further depreciating move amid a softer tone surrounding the US dollar.
Hence, any subsequent fall is more likely to find decent support and remain limited near the 1.2550 horizontal support. That said, some follow-through selling has the potential to drag the USD/CAD pair further towards challenging the key 1.2500 psychological mark. In the meantime, any attempted recovery move now seems to confront immediate resistance near the 1.2580-85 region. This is closely followed by the 1.2600 support breakpoint, which if cleared might trigger a short-covering move and push the USD/CAD pair back towards the 1.2625-30 supply zone.