The US Dollar declined by 37 pips or 0.29% against the Canadian Dollar on Monday. A breakout occurred through the lower boundary of an ascending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, the exchange rate could continue to edge lower during the following trading session. The potential target for USD/CAD will be near the 200– hour SMA at 1.2542.
However, technical indicators suggest on the 4H time-frame chart that the currency exchange rate is likely to surge within this session.
