The USD/CAD is at a critical area...

From the highs of 2008/09 two major levels are now being tested. On the daily chart the channel up from January 2014 (yellow area) has been breached at the trendline support (blue shaded circle) and almost immediately met with the first major support level (area) which so far has held. However it appears to be a pullback meaning it may well have another stab at breaking through it. Confirmation to the downside would be breaking through the second major support level and a hold below on the 4 hour would be needed before considering entering a short position. From either of the support levels heading back into the 'Yellow box' area would be a buy signal as we would expect to head further north, however failing to make it into the box heading into next week would find ourselves with a Head & Shoulders pattern, which again would be bearish.