The US Dollar surged by 73 pips or 0.57% in value against the Canadian Dollar on Wednesday. The currency pair tested a resistance cluster formed by the monthly R1 and the weekly R3 at 1.3339 during yesterday’s trading session.
As for the near future, the USD/CAD exchange rate could make a downside retracement from the resistance cluster, as mentioned earlier, during the following trading session. The potential target will be near at the 50– hour simple moving average at 1.3300.
However, technical indicators suggest that the currency exchange rate will most likely continue to edge higher in the shorter term.