The US Dollar has been depreciating in a descending channel pattern against the Canadian Dollar since the end of May. The currency pair reached near a three-week low at 1.3360 on Wednesday.
The exchange rate is currently trading near the upper boundary of the descending channel pattern at 1.3421 and could be set for a breakout.
If this breakout occurs, a surge towards the resistance cluster formed by the combination of the 100– and 200-hour SMAs at 1.3467 during the following trading session.
However, if the channel pattern holds, bears could aim for the weekly S2 at 1.3370 within this session.
