The downward pressure partially eased on Monday. Sellers did not find any reason to move the spot lower so they decided to take some profits. A weak buying interest pushed the pair to the upper border of the descending channel. The US dollar tested the level 1.2800 in the morning trades and regained this level in the mid-European session. The resistance stands at 1.2900, the support is at 1.2800.
It seems unlikely that the pair could break below 1.2700 today or even tomorrow. Buyers may reverse some losses and push the US dollar to the 1.2850 area where the spot will probably face a stiff resistance from the EMA50 and EMA200. If so, these lines will reject the USD/CAD pair towards the 1.2700 handle.