The US Dollar declined by 118 basis points or 0.84% against the Canadian Dollar on Wednesday. The currency pair tested the monthly S2 at 1.3853 on Thursday morning.
If the monthly support level at 1.3853 holds, a surge towards the 50- hour simple moving average at the 1.3945 could be expected within the following trading session.
However, if the USD/CAD currency exchange rate breaks the monthly S2, bearish traders could continue to pressure the price lower during the following trading session.
