The US Dollar surged by 175 pips or 1.25% in value against the Canadian Dollar on Monday. The currency pair breached a resistance cluster at 1.4152 during yesterday’s trading session.
Everything being equal, the exchange rate will most likely continue to edge higher. The potential target for the USD/CAD pair will be at the upper boundary of a descending channel pattern at 1.4250.
However, the 200– hour simple moving average at 1.4296 could provide resistance for the currency exchange rate within this session.