The 50– hour simple moving average has continued to pressure the US Dollar lower against the Canadian Dollar. The currency pair depreciated by 42 basis points during yesterday’s trading session.
Everything being equal, the USD/CAD exchange rate will most likely make a U-turn from the support cluster at the 1.3160 area within the following trading session. Bullish traders might target the upper boundary of a descending channel pattern at 1.3200.
However, technical indicators demonstrate that the currency exchange rate will continue to trade south today.