In general, the USD/CAD continues to decline from the 1.2960 mark, as simultaneously the pair continues to find short term support and resistance in round exchange rate levels like the 1.2920, 1.2940 and 1.2910. In the meantime, the currency pair has revealed a channel down pattern, which has been capturing the rate’s moves throughout this week.
If the pair continues to decline, support could be found in the 1.2900 mark. A move below the 1.2900 level, is expected to be slowed down by the lower trend line of the channel down pattern. Meanwhile, note that, except the mentioned levels, there is no support as low as 1.2850.
On the other hand, a recovery of the US Dollar against the Canadian Dollar is expected to find resistance in the combination of the 1.2920 level, the upper trend line of the channel pattern and the 50-hour simple moving average. Above these levels, resistance could once again be provided by 1.2940 and 1.2960 levels.
