The US Dollar depreciated about 51 base points against the Canadian Dollar on Monday. The currency pair was pressure by the combination of the 50– and 100-hour SMAs during the previous session.
The exchange rate is currently trading near the lower boundary of an ascending channel pattern at 1.3401.
If the support level formed by the lower band of the channel pattern holds, a surge towards the monthly R2 at 1.3436 could be expected.
However, if the currency exchange rate passes the ascending channel pattern, the next target for bearish traders will be near the 200-hour SMA at 1.3340.
