Eventually, the USD/CAD pair reached above the December high level zone and the weekly R1 simple pivot point at 1.2835/1.2853. On Wednesday morning, the rate confirmed the zone as support. Meanwhile, the rate has confirmed that it is trading in a channel up pattern, which has guided the USD against the CAD since December 8.
A continuation of the surge of the pair might find resistance in round exchange rate levels like the 1.2900 and 1.2950 and the upper trend line of the channel up pattern. A passing of the round levels could eventually result in the USD/CAD reaching the weekly R2 simple pivot point at 1.2965.
Meanwhile, a decline would have to pass the 1.2835/1.2853 zone’s support, before reaching the 50-hour simple moving average at 1.2820 and the 1.2800 level.