The US Dollar declined by 91 pips or 0.71% against the Canadian Dollar on Tuesday. The decline was stopped by the 100– hour simple moving average at 1.2689 during yesterday’s trading session.
Given that the exchange rate is currently trading near the lower boundary of an ascending channel pattern at 1.2711, a breakout could occur within this session.
If the breakout occurs, bearish traders could aim at the weekly support level at 1.2611 today.
However, if the channel pattern holds, the currency exchange rate could target the 1.2800 during the following trading session.
