The US Dollar has surged by 77 pips or 0.59% against the Canadian Dollar on Tuesday. The currency pair was pressured lower by the 50– hour simple moving average during yesterday’s trading session.
Currently, the exchange rate is trading near the lower boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the weekly S2 at 1.2882 could be expected during the following trading session.
However, if the channel pattern holds, the currency exchange rate could make a brief pullback today.
