On Tuesday, the US Dollar surged by 43 pips or 0.32% in value against the Canadian Dollar. The currency pair tested the 200– hour simple moving average at 1.3269 during yesterday’s trading session.
The USD/CAD exchange rate made a downside reversal from the 200– hour SMA. As a result, a breakout occurred through the lower boundary of a dominant ascending channel on Wednesday morning.
Given that a breakout had occurred, bearish traders could continue to drive the price lower within the following trading session. The potential target will be at the weekly S1 at 1.3212.
