The US Dollar declined by 31 points or 0.23% against the Canadian Dollar on Monday. The currency pair tested a support cluster formed by the monthly PP and the weekly S1 at 1.3243 on Tuesday morning.
All things being equal, the USD/CAD exchange rate could continue to edge lower during the following trading session. The potential target for bears would be at the 1.3177 level.
However, given that the currency exchange rate is currently trading near the upper boundary of a descending channel pattern, a breakout might occur during the following trading session.
