The US Dollar appreciated about 67 base points against the Canadian Dollar on Monday. The surge was temporary stopped by a resistance level formed by the 100-hour simple moving average at 1.3200.
The exchange rate was located near the upper boundary of a descending channel pattern at 1.3181 and could be set for a breakout.
If this breakout occurs, the USD/CAD currency pair will target a resistance level formed by the weekly R1 at 1.3235.
However, it is important to note that a resistance cluster formed by the combination of the 100– and 200-hour SMAs at 1.3190 could hinder the rate from hitting target today.
