The US Dollar declined by 43 pips or 0.34% against the Canadian Dollar on Wednesday. The decline was stopped by the 200– hour simple moving average during yesterday’s trading session.
Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout. If the breakout occurs, a decline towards the 1.2700 level could be expected within this session.
However, if the channel pattern holds, bullish traders could pressure the currency exchange rate higher during the following trading hours.