The 50– hour simple moving average pressured the US Dollar lower against the Canadian Dollar on Wednesday. The currency pair tested the lower line of a descending channel pattern at 1.2674 during yesterday’s trading session.
The exchange rate is currently trading near the lower boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 1.2600 level could be expected within this session.
However, if the channel pattern holds, bullish traders would pressure the currency exchange rate higher today.
