USD/CAD turned from the 1.3400 level today, and that was important price action. The reason: It was major channel resistance from the March highs. This is significant, as it suggests that a break above the 1.3400 level could kick-start a squeeze back towards the 200 dma.
Two other things you should note:
The pair put in a false breakdown last week below the 1.3310 level.
As other major currencies have rallied substantially against the USD in recent weeks, the underperformance of CAD is noticeable. If you are long on CAD in some form, you are probably well aware of this, especially against the USD. If you put all this information together, the risk of a USD/CAD upside move is building.
USD/CAD (Image not shown due to low ratings)
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