Last time we looked at the USD/CAD, we saw the Canadian Dollar (CAD) surging - USD/CAD falling. This was a reaction to a hawkish Bank of Canada monetary policy statement.We noted support at 1.34 and at 1.32, cautioning reliance on 1.34. So far though, the market has anchored above 1.34.USD/CAD Daily Chart (click to enlarge)Support Holds:- Around 1.34, price tested a rising trendline, and a support/resistance pivot area. - Price is still trading above the 200- and 100-day simple moving averages (SMAs). - Given the current technical picture, it looks like the market is maintaining the bullish outlook.Bullish Outlook and the 1.3540 Resistance:- While 1.34 held the first time it was tested as support recently, we should not be so quick to conclude that the market is bullish.- The technical picture does show a bullish bias, but if price fails to break above 1.3540, this bullish bias should be shelved.- On the other hand, a break above 1.3540 would add weight to the bullish outlook, which has the 1.38 area in sight.Short-term Momentum:- Another thing to look for in terms of confirmation for the upside, is the short-term momentum seen in the 4H chart.- We already saw price break above a falling trendline, but that is not enough. - We need to see the 4H RSI push above 60 and preferably above 70 before declaring short-term bullish momentum. - By that time, we should also see price break above 1.3540. - On the other hand, if the RSI in the 4H chart holds under 60, we should anticipate further bearish correction. - In this bearish scenario, we should not rely on 1.34 for support anymore, and instead anticipate support around 1.32 or 1.3250.USD/CAD 4H Chart (click to enlarge)