Last time we looked at USD/CAD, we noted that it has turned bullish, but hinted that it needed a period of consolidation or bearish correction with a large bearish engulfing candle. Indeed, USD/CAD is consolidating, and is developing some bearish correction as well.USD/CAD Daily Chart(click to enlarge)Pullback:- Since the bearish engulfing candle we observed in the last USD/CAD update, price has been consolidating. - Price took a bearish tilt at the end of last week, which has continued into this week. - This is now a bearish correction. Support Levels:- The first key support will be around 1.3530. This is support/resistance pivot. - Below that the 1.3410 area will be critical. - I think USD/CAD will find support somewhere between these two key support factors. - Note that a rising trendline would likely help provide support in this area.- We should also anticipate the RSI to turn up from 40. In a bullish market, the RSI should hold above 40. Bullish Outlook:- If price indeed holds above 1.3410, preferably holding above 1.3530, then the bullish outlook improve. - This bullish outlook has the 1.40 handle in sight.USD/CAD Weekly Chart(click to enlarge)