The US Dollar surged by 47 basis points or 0.36% against the Canadian Dollar on Monday. The currency pair tested the upper boundary of a descending channel pattern on Tuesday morning.
If the descending channel pattern holds, bearish traders could pressure the exchange rate lower within this session. The potential target would be near the support line at 1.3040.
However, if the currency exchange rate breaks the channel pattern, a surged towards the weekly resistance level at 1.3172 could be expected within this session.
