The US Dollar appreciated by about 170 basis points or 1.18% in value against the Canadian Dollar on Monday. The currency pair breached the 50– and 100– hour SMAs during yesterday’s trading session.
Currently, the exchange rate is trading near the bottom border of an ascending channel pattern at 1.4408.
Most likely, a breakout could occur within this session. If the breakout occurs, a decline towards the 200– hour SMA at 1.4188 could be expected today.
However, if the channel pattern holds, the currency exchange rate might make an upside reversal from the 1.4408 area within the following trading session.
