I have been slightly bullish on the USD/CAD, anticipating a continuation of the choppy uptrend it has been in since April, 2016. However recent price action suggests it might already be in a bearish continuation of a downtrend that started in early 2016. USD/CAD Weekly Chart(click to enlarge)Bearish Continuation Breakout:- The weekly chart shows that price action this week has broke below a rising channel. - Now, to put things in perspective, USD/CAD was bullish going into 2016. This was the reason, I still had a bullish outlook for USD/CAD, and still do for the long term. - But in the short to medium-term, we are dealing with a bearish correction since early 2016. - It looks like we had a bearish correction swing in early 2016, followed by a choppy period for more than a year. - Now, price action is sharp and bearish again. - The sharp bearish price action compared to the choppy bullish price action suggests that bears are in charge.- Therefore, we should anticipate a return towards 1.2440, 2016-low. - If this is some kind of ABC correction, we might anticipate price to continue lower, but we should probably limit the bearish outlook to the 2015 low around 1.1940. We might even consider looking for support around 1.20, a psychological level.