USDCAD turned sharply lower last week and closed at the low on Friday, which suggests that pair is already turning down into a new corrective set-back. We are tracking wave 4-circled that can retrace even back to 1.3800-1.4000 area before uptrend may resume for a final leg within a bullish cycle. For now, invalidation level remains at 1.3456; so as long it will hold trend is actually up, but we would have no problem turning immediately bearish if overlap occurs.
USDCAD Daily Chart
On the lower time frame, USDCAD reached new highs around 1.4700 last week where bears stept in and caused a strong bearish turn. Notice that move was sharp and it also extended much lower on Friday, which is an important evidence for a top in place as there was a bearish weekly candlestick formation. But it can be only temporary top if we consider that decline can unfold only in three legs that would represents then a wave four. However, no matter where the pair is headed long-term, for the short-term swings there is room for more downside in sessions and days ahead. Notice that current leg down is wave A, so more weakness to come after wave B rally.
USDCAD 4 Hour Chart