Major overnight move for the USD brought the USDCAD down to 1.06 which is a solid resistance point for the USDCAD. Sustained volatility via the DCD indicator means that price may hang around here and range for today however I believe that a breakout on the downside may occur with the XZ indicator showing momentum has formed on the short side rather then the long side and the fact that the first Major ATR Stop has been broken.

Should price break below 1.06 with a few sustained bars, i would expect price to continue short to 1.0550 at least at the next major support point.