The US Dollar edged lower on Tuesday. The decline began after the currency pair tested a traditional monthly pivot point at 1.3302. As a result, a breakout through the lower boundary of an ascending channel pattern occurred.
Given that a breakout had occurred, it is likely that the USD/CAD exchange rate continues its downward movement within this session.
The potential downside target will be near a support level at 1.3134. However, the 200-hour simple moving average located at 1.3207 could hinder such downwards movement today.
