Looking ahead, the US dollar price action and the Canadian inflation data will emerge as the key drivers for the major. The Canadian Consumer Price Index (CPI) is seen higher at 8.4% YoY in June vs. 7.7% expected. The annualized core CPI is likely to surge 6.7% in June vs. 6.1% reported previously. Note that the Bank of Canada (BOC) hiked the key rates by a surprise 100 bps to 2.5% at its policy meeting last week to fight raging inflation. From a short-term technical perspective, USD/CAD is challenging the critical horizontal 50-Daily Moving Average (DMA) at 1.28558, as of writing. Daily closing below the latter is needed to resume the bearish momentum from above 1.3200 levels. The 14-day Relative Strength Index (RSI) is flatlined but remains below the 50.00 level, suggesting that the downside bias looks well in place in the near term. A breach of the key support could trigger a sharp drop towards the mildly bullish 100 DMA at 1.2771. Ahead of that, the 1.2800 round number could be put to test.