The US Dollar edged lower by 81 pips or 0.63% against the Canadian Dollar on Tuesday. A breakout occurred through the lower boundary of an ascending 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 during the following trading sessions. The potential target for bears would be near the weekly S1 at 1.2677.
However, the 200– hour simple moving average at 1.2769 could provide support for the USD/CAD currency exchange rate in the short term.
