The US Dollar edged lower by 75 points or 0.59% against the Canadian Dollar on Thursday. The currency pair tested the lower boundary of a narrow descending channel pattern during yesterday’s trading session.
A breakout occurred through the upper line of the narrow descending channel pattern during the London session on Friday.
Most likely, the exchange rate could edge higher during the following trading session. The potential target would be at the weekly R1 at 1.2783.
However, a resistance cluster formed by the weekly PP and the 200– hour SMA at 1.2703 could provide a barrier for bulls within this session.
