The US Dollar declined by 36 points or 0.28% against the Canadian Dollar on Tuesday. The currency pair breached the 50, 100– and 200– hour SMAs during Tuesday’s trading session.
All things being equal, the exchange rate is likely to continue to edge lower in a narrow descending channel pattern. A breakout through the lower boundary of the descending channel could occur within this session.
However, if the channel pattern holds, the USD/CAD currency exchange rate could make a brief pullback towards the 1.2740 level today.