The US Dollar declined by 84 points or 0.66% against the Canadian Dollar on Tuesday. The currency pair tested the lower boundary of an ascending channel pattern at 1.2703 on Wednesday morning.

Currently, the USD/CAD exchange rate is trading near the bottom border of the channel pattern and could be set for a breakout.

If the breakout occurs, a decline towards the weekly S1 at 1.2610 could be expected within this session.

However, if the ascending channel pattern holds, bullish traders are likely to pressure the currency exchange rate higher today.