The US Dollar declined by 162 pips or 1.15% against the Canadian Dollar on Tuesday. The currency pair tested the lower boundary of a dominant ascending channel pattern at 1.3950 during yesterday’s trading session.
The exchange rate bounced off the bottom border of the prevailing channel at the end of Tuesday’s session. The pair is currently testing a resistance line at 1.4060.
If the resistance level holds, the pair would continue its bearish move within the following trading hours.
Though, if the currency exchange rate breaks the 50– hour SMA at 1.4065, a surge towards the 1.4150 area could be expected today.
