The US Dollar depreciated about 86 base points against the Canadian Dollar on Wednesday. The currency pair tested the bottom border of a medium-term descending channel pattern at 1.3106 during yesterday’s trading session.
Everything being equal, it is likely that the currency exchange rate will make a brief pullback towards a swing high at 1.3230 during the following trading session.
However, a resistance cluster formed by the 50– and 100-hour simple moving averages near 1.3176 could hinder bullish traders from driving the USD/CAD currency pair higher today.
