USD/CAD analysis: Two scenarios likely

Dukascopy Bank Team Dukascopy Bank SA

USD/CAD

On Monday, the US Dollar declined by 51 pips or 0.40% against the Canadian Dollar. The currency pair breached the 50– hour simple moving average during Monday's trading session.

Everything being equal, the exchange rate could continue to edge lower during the following trading session. A breakout through the lower boundary of an ascending channel pattern could occur.

However, if the channel pattern holds, the USD/CAD currency exchange rate could make a pullback towards the 1.2750 area within this 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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