The US Dollar depreciated about 95 base points against the Canadian Dollar on Monday. The currency pair breached both the 50– and 100-hour SMAs at 1.3015 and 1.3006 during the end of yesterday’s session.
Everything being equal, it is likely that the USD/CAD currency pair continues moving south towards the weekly S1 at 1.2944 during the following trading session.
However, a support line formed by the 200-hour SMA and the lower boundary of an ascending channel at 1.2978 could prevent bearish traders from pushing the currency exchange rate toward its target today.
