The US Dollar has surged by 53 pips or 0.39% against the Canadian Dollar since yesterday’s trading session. The currency pair tested a resistance cluster formed by the 50– and 200– hour SMAs at 1.3605 on Thursday morning.
If the resistance cluster holds, bearish traders are likely to pressure the exchange rate lower within this session. A possible breakout through the lower boundary of an ascending channel pattern could occur.
However, if the currency exchange rate breaks the 50– and 200– hour SMAs, a surge towards the 1.3640 area could be expected today.