The US Dollar declined by 82 basis points or 0.64% against the Canadian Dollar on Thursday. A breakout occurred through the lower boundary of a descending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, bearish traders are likely to continue to pressure the exchange rate lower within this session. The possible target for bears would be at the 1.2820 area.
Although, the currency exchange rate could make a brief retracement towards the 50– hour simple moving average at 1.2907 in the shorter term.
