The US Dollar has been depreciating in a junior descending channel pattern against the Canadian Dollar since November 14. The currency pair declined by 34 basis points during yesterday’s trading session.
All things being equal, the USD/CAD exchange rate will most likely continue to edge lower in the descending channel during the following trading session. Bears could drive the price towards the 1.3180 area.
However, a support level formed by the weekly S1 at 1.3198 could provide support for the currency exchange rate in the shorter term.