The US Dollar has declined by 79 basis points or 0.57% against the Canadian Dollar since Monday’s trading session. A breakout occurred through the lower boundary of a descending channel pattern on Tuesday morning.
Given that a breakout had occurred, the USD/CAD exchange rate would continue to edge lower during the following trading session. The possible target for bearish traders could be at the 1.3872 region.
A potential upside reversal could occur from the weekly support level at 1.3872 within this session.