USD/CAD has been in a choppy bearish mode since June, it came up to almost 1.34 and then retreated. From the daily chart below, we can see that the pair has been in a falling channel in the past couple of months.USD/CAD Daily Chart(click to enlarge)Pullback After Breakout:- Before looking at the price action right now, let's look at the general price action since mid-2017.- We can see that price was bearish, but bottomed in 2017 and eventually broke higher in 2018.- Price broke above both a price bottom and above a falling resistance. Furthermore, price has held above the 200-day simple moving average (SMA). - The recent bounce from 1.29 also suggests the market is indeed in a bullish mode.- Finally, the RSI held mostly above 40, which reflects maintenance of the prevailing bullish momentum when price bottomed and broke higher. - We should at least expect a retest of the current higher just under 1.34. If price breaks above 1.34, USD/CAD will open up the 1.38 area, which was around the 2017 high.