The US Dollar edged lower by 122 pips or 0.96% against the Canadian Dollar on Tuesday. The currency pair tested the lower boundary of a descending channel pattern at 1.2665 during yesterday’s trading session.
Bears are likely to continue to pressure the USD/CAD exchange rate lower during the following trading session. A breakout through the bottom border of the descending channel pattern could occur.
However, if the channel pattern holds, the exchange rate would make a brief pullback towards the 100– hour simple moving average at 1.2736 within this session.
