USDCAD has broken below the long-term bullish channel near the end of October but prices has bounced strongly since then bringing price inside the long-term bullish channel once again. However price has made no real progress since July as it has been moving inside the trading range of 1.34-1.30.

Blue lines - long-term bullish channel

Red line -medium-term resistance trend line

USDCAD is trading near 1.3280 having gained more than 200 pips after retesting the 1.30 low. Price is back inside the long-term bullish channel. Major resistance ahead is at 1.34-1.3420. Breaking above the red resistance trend line we should expect price to continue much higher even towards 1.37-1.38. If price gets rejected at the resistance and we see price break below support at 1.3180, then the chances of a break below 1.30 increase dramatically. Short-term traders should keep a close eye on the short-term resistance at 1.3355 and to the short-term support at 1.32.