USD/CAD analysis: Potential breakout

Dukascopy Bank Team Dukascopy Bank SA

USD/CAD

The US Dollar has declined by 144 pips or 1.07% against the Canadian Dollar since Tuesday's trading session. The currency pair tested a support cluster formed by the weekly S1 and the monthly S2 at 1.3278 on Wednesday morning.

Technical indicators flash selling signals on all time-frame. Most likely, the decline will continue today. A possible breakout through the lower boundary of a descending channel pattern could occur.

However, if the channel pattern holds, bulls could attempt to push the price a little higher towards the 1.3340 level during the following trading session.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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