The US Dollar declined by 47 pips or 0.38% against the Canadian Dollar on Wednesday. The 50– hour simple moving average pressured the exchange rate lower during Wednesday’s trading session.
Given that the 50– and 200– hour SMAs are above the price action, bearish traders are likely to continue to drive the currency pair lower during the following trading session. The possible target for sellers could be near the weekly S1 at 1.2204.
However, the support level at 1.2256 could still provide support for the USD/CAD currency exchange rate in the shorter term.
