USD/CAD has been consolidating roughly between 1.2675 and 1.2910. We discussed anticipating support around 1.2675, but price fell sharply below this support, and even the pivot at 1.2625. USD/CAD will likely be bearish in January 2018. $USDCAD Daily Chart(click to enlarge)Still Bearish:- USD/CAD had a tumble from 1.39 to 1.2070. - This established a bearish outlook, but price rebounded sharply since hitting 1.2070.- This bullish attempt however failed to push USD/CAD above the 200-day simple moving average (SMA). - Furthermore, the RSI failed to hold above 40, which would have been a sign of bullish momentum building. - Instead, the RSI is below 40, and price is now below the recent range support, and below the 200-, 100- and 50-day SMAs.- Unless price pops up above 1.2780, I think USD/CAD is now heading lower in the coming month. Bearish Target:- 1.2425 area is the first common support pivot. - Below that, the 1.2070 and then 1.20 mark is the next bearish target. - We can gain confidence in these targets if USD/CAD does indeed pop up and confirm resistance around 1.27. - Also, if the RSI pops back, look for it to hold below 60, which would be a sign that the bearish momentum is maintained.