Downside risks pressured the US Dollar against the Canadian Dollar on Wednesday. The USD/CAD currency pair declined by 112 pips or 0.90% during Wednesday’s trading session.
Currently, the exchange rate is trading near the lower boundary of a descending channel pattern at 1.2395 and could be set for a breakout.
If the breakout occurs, a decline towards the weekly S2 at 1.2307 within this session.
However, if the channel pattern holds, a surge towards the 1.2485 area could be expected today.