As apparent on the chart, the sluggish Canadian GDP data release mid-Tuesday pushed the pair back in the channel up which was breached earlier in the session.

However, the pair’s failure to move past the 1.29 mark for several hours demonstrates that the channel is no longer valid. It is more likely that the US Dollar is pressured by bears in this session and even during this week; however, the strong support of the 55– and 100-hour SMAs is likely to hinder a swift breakout from this area.

In general, it is expected that the pair remains between this support and its nearest resistance—the weekly R1 at 1.2960. The rate should eventually gain momentum and move south.

It should be noted that various fundamental events that are likely to affect the rate are scheduled for this session