The US Dollar declined by 60 pips or 0.47% against the Canadian Dollar on Wednesday. A breakout occurred through the lower boundary of an ascending channel pattern during yesterday's trading session.
Given that a breakout had occurred, the USD/CAD exchange rate could continue to edge lower during the following trading session. The possible target for bears would be near the weekly support level at 1.2610.
However, the currency exchange rate could make a brief pullback towards the 200– hour simple moving average at 1.2718 within this session.
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