The 50– hour simple moving average pressured the US Dollar lower against the Canadian Dollar on Monday. A breakout occurred through the lower boundary of a descending channel pattern on Tuesday morning.
Given that a breakout had occurred, the USD/CAD currency pair could continue to trend bearish during the following trading session. The possible target for bearish traders will be at the 1.2950 level.
However, the weekly support line at 1.3016 could provide a barrier for the currency exchange rate within this session.
