I think USD/CAD is bullish and will break the resistance just under 1.36. I thought price would test this resistance after price broke above 1.34 earlier in April, but price instead made another downswing which stopped around 1.3225. Price has since been rallying sharply, and I think this time, we should expect the resistance at 1.36 that we have seen since Nov. 2016.USD/CAD Daily Chart(click to enlarge)Bullish Signs:- First of all, we can see that price has rallied from a 2016 low of 1.2460 to almost 1.36 by the end of 2016. - Since then, price has been sideways. So the bullish market has turned sideways, but not bearish.- Now, in 2017, price failed to reach 1.36, but did build some bullish momentum in March when price cracked 1.35.- Note that since this bullish swing, price has held above the 200- and 100-day simple moving averages (SMAs). The latest test of 1.3225 also tested the 200-day SMA, which stood as support. The dynamics around the SMAs suggest a bullish bias, or a bullish market in development.- The RSI also shows bullish momentum development. It pushed above 70 and held above 40, a sign that bullish momentum has been maintained. - Finally, the 4/24 session candle is a bullish engulfing candle, which at least makes it likely that USD/CAD will test the 1.36 resistance. - And because of the building bullish bias, I think we should NOT try to sell from this resistance, unless it is a very short-term "scalp". It is quite possible that we see some initial resistance here that can push price back to 1.3450, but I do not have strong confidence of price returning below the 4/24 session low (1.3410).Bullish Outlook:- If USD/CAD indeed breaks above 1.36, it would open up a bullish market (from a sideways market). - The 1.40 handle is a viable 2017 target.- There is also a resistance pivot around 1.38, which could be a short to medium-term target. USD/CAD Weekly Chart(click to enlarge)