The USDCAD has been trading in a narrow 39 pip trading range. The average over the last 22 trading days has been at 98 pips. So trading activity is confined.
Looking at the hourly chart, the reason seems to be technical.
On the topside, the price moved up to test its falling 100 hour moving average (blue line) at 1.2602. Sellers leaned against that moving average on the first look as risk can be defined and limited. The price has since fallen down to 1.2578.
On the downside, the pair has found support near 1.2563 (lows from Monday, Tuesday and again today).
Traders will look for the next break with momentum, but what we know is 39 pips and technical levels flexing there muscle, there is tension. Something has to give.