The US Dollar declined by 53 pips or 0.42% against the Canadian Dollar on Wednesday. The 50– hour simple moving average provided support for the currency pair during yesterday’s trading session.
Currently, the exchange rate is trading near the lower line of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 200– hour SMA at 1.2495 could be expected today.
However, if the channel pattern holds, buyers will most likely pressure the currency exchange rate higher in this session.
