The US Dollar declined by more than 90 pips or 0.65% against the Canadian Dollar on Monday. The currency pair tested a support cluster formed by the 200– period simple moving average and the monthly pivot point at 1.4030 during the European trading session on Tuesday.
If the support cluster holds, bullish traders could pressure the exchange rate towards the weekly R1 at 1.4185 within the following session.
However, if the USD/CAD currency exchange rate breaks the 200– hour SMA and the weekly PP, the next target for bears would be near the weekly support level at 1.3983.
