When we look at current situation at USDCAD pair, we see 3 important trends and their channels. I have marked them up as Channel 1,2 and 3 respectively. The larger the trend, the more important it is. Currently, USDCAD prices are at the upper channel line of Trend#1, which translates to channel resistance. The second channel (channel#2 in dark blue) is a formation and indicates a weakness. The third channel was a trend which was a sign for weakness, as it formed once the channel#2 (dark blue) was broken (i.e.failed). Now this channel#3 is also broken (failed) since 3 days.
What does all this mean? Those channel (i.e. trend) indications FIRMLY indicate that there is WEAKNESS and it is highly unlikely that the prices go higher from this point on. Having a weakness established by Channels #2,3 at the upper trend channel#1 shows us that a breakout in the up direction is highly unlikely.
We shall not expect a clean cut and fast down turn though, because 1- Market is highly Volatile and 2- there are bunch of resistance levels holding the prices to slip further down. Therefore a gradual decline following a channel should be expected from this point on. Short term traders can profit from the swings, especially taking short positions on this declining channel. The final target is 1.28, where the major 4th wave shall terminate. Good luck