The US Dollar has surged by 46 basis points against the Canadian Dollar since yesterday’s trading session. The currency pair tested a resistance cluster formed by the monthly pivot point and the weekly R1 at 1.3085.
As for the near future, the USD/CAD exchange rate could make a brief downside retracement. The possible target will be near the support cluster formed by the weekly PP and the combination of the 100– and 200– hour SMAs at 1.3057.
However, technical indicators flash buy signals on the 4(H) time-frame chart. Therefore, an upward reversal could occur from the support cluster, as mentioned earlier, within the following trading session.
