Looks like it will reach the red line yes. Might bounce on it a bit, but will dive down through it eventually because of oil price(fundamentally correlated- Canada is the 3rd exporter of oil). I think oil has reached bottom at approx. $37 and usdcad has maxed out at approx. $1.35. Oil won't go any further down now, I believe. So usdcad should range now between 1.30 and 1.20 for a long while. See my prediction on Crude Oil for the coming months:
I'll buy at the lower trendline. It's in the middle of a trading range now and I wouldn't recommend to trade that.
Price has still potential to go up where it is at the moment, no gurantee it will go down.
However if it goes down you will have a nice edge for a buy.