The US Dollar surged by 60 pips or 0.45% against the Canadian Dollar on Monday. The currency pair tested the monthly S1 at 1.3325 during Monday’s trading session.
The exchange rate made a U-turn from the monthly S1 during the Asian session on Tuesday.
Currently, the pair is testing the 50– hour simple moving average at 1.3388. If the USD/CAD pair breaks the 50– hour SMA, a surge towards the 1.3420 could be expected today.
However, if the 50– hour SMA holds, bearish traders could continue to pressure the currency exchange rate lower within this session.
