USD/CAD has been recovering since falling to 1.2064 in September. The 4H chart shows USD/CAD rallying in a rising channel up to 1.26 last week.USD/CAD 4H Chart(click to enlarge)Bullish:- In the short-term, we can say that USD/CAD is bullish simply by looking at the price action in the 4H chart.- I think as long as price holds above 1.24, the market has a bullish bias. - However, as it tags 1.26, USD/CAD is testing a falling resistance seen more clearly in the daily chart.Bearish Trend:- While the short-term trend in the 4H chart is bullish, the prevailing medium-term trend since May is bearish.- The short-term uptrend is now challenging the medium-term downtrend.- Price is about to test a falling resistance around 1.26. - Also, the RSI is right around 60, where it should turn down if the prevailing downtrend is to keep its momentum. I think we should anticipate at least a small reaction around 1.26 with downside to at least 1.24. I think even in a bullish trend, price can retreat to 1.24. And if USD/CAD finds support around 1.24, the bullish outlook would become even stronger .USD/CAD Daily Chart(click to enlarge)