The US Dollar has been softening up against the Canadian Loonie. USD$CAD price action is signaling a continuation of this trend in September.USDCAD Daily Chart(click to enlarge)Lower Highs and Lows:- The most apparent sign of a bearish market is lower highs and lower lows. - It looks like the major highs and lows in 2019 show this bearish dynamic.- Furthermore, we should note that the bearish price action in June broke below a rising channel support from 2018 before it made a new 2019-low.- Then, price rebounded, but made another lower high before topping.- There was an August consolidation that kept USD/CAD mostly under 1.3350.- But there was a common support around 1.3250. - Last week, price broke below this support as well as a rising trendline from July. - This suggests bears are still in charge, and that a bearish swing could be developing.- In this scenario, I would look for a test of the 1.3025 support area. - A break below 1.30 then would open up the 1.2780-1.28 support area. - At this point, if price action pulls back above 1.3250, we might have to reconsider the bearish scenario, and consider a possible sideways, or even bullish market ahead. In other words, I think 1.3250 will be a critical resistance for the current bearish scenario.