The US Dollar surged by 155 pips or 1.10% against the Canadian Dollar on Friday. The currency pair tested the upper boundary of a descending channel pattern during Friday’s trading session.
The exchange rate made a U-turn from the upper border of the descending channel pattern on Monday morning.
Most likely, the USD/CAD will continue to decline within this session. The potential target could be at the support cluster at 1.4019.
However, technical indicators suggest that the currency exchange rate might trade bullish during the following trading session.