Upside risks prevailed in the market on Friday, thus allowing the USD/CAD currency pair to gained about 71 base points. The pair breached the 200-hour simple moving average at 1.3096 during the end of Friday’s session.
The exchange rate was stranded between SMAs during the first part of Monday’s session. The 100-hour SMA at 1.3114 was providing resistance for the rate, while a support cluster formed by the 50– and 200-hour SMAs was providing support for the pair at 1.3100.
A breakout from the SMAs is likely to occur within this session. Meanwhile, technical indicators suggest a southern breakout.
