On Monday, the US Dollar declined by 86 pips or 0.68% against the Canadian Dollar. The currency pair tested the lower boundary of a descending channel pattern at 1.2566 during Monday’s trading session.
All things being equal, the exchange rate could continue to edge lower in a descending channel pattern within the following trading session. The potential target for sellers would be near the 1.2540 level.
However, given that the currency exchange rate has bounced off the lower line of the channel pattern, the next target for the USD/CAD pair would be near the 1.2640 area.
