The USD/CAD currency pair bounced off a support level formed by the 200– hour simple moving average at 1.2450 on Wednesday. As a result, the US Dollar surged by 98 pips or 0.78% against the Canadian Dollar. A breakout occurred through the upper boundary of a descending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, buyers could continue to push the exchange rate higher within this session.
However, bullish traders might encounter resistance at 1.2585 during the following trading session.
