We will be expecting price to respect the and continue on this new found downtrend which can be seen on the chart which is following a breakout move from the prior uptrend.
Price has continued to move down through the previous resistance indicated. We would typically say sentiment was now after this happened as we would of expected resistance to become support in a market. The yellow arrow indicates the expected direction after and if the trend is respected.
However if a short is in fact the wrong move then it will breakout of the current downtrend and confirm a possible long entry on a pullback to the - indicated by the green arrows.
Because of the nature of this pair currently as there appears to be a fair bit of indecision and the CAD's ties to the price of oil , both of these setups require skill, confidence in your strategy and confirmation on the chart to trade. Do not trade if any one of these things are lacking.