The US Dollar surged by 61 basis points or 0.47% against the Canadian Dollar on Wednesday. A breakout occurred through the upper boundary of a descending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, bullish traders are likely to continue to drive the exchange rate higher during the following trading session. The potential target will be at the 1.3200 level.
However, the 200– hour simple moving average resistance level at 1.3107 could provide a barrier for bulls within this session.
