The US Dollar depreciated about 61 base points against the Canadian Dollar on Tuesday. The currency pair tested the lower boundary of an ascending channel pattern at 1.3360 during the morning hours of Wednesday’s trading session.
If the support level formed by the bottom border of the channel pattern holds, the US Dollar might continue to maintain the ascending channel during the following trading session.
However, if a breakout occurs, bearish traders could push the currency exchange rate towards a support level formed by the 200-hour simple moving average at 1.3334 within this session.
