The US Dollar surged by 221 pips or 1.60% in value against the Canadian Dollar on Monday. The currency pair tested the upper boundary of a long-term ascending channel pattern at 1.4024 on Monday.
The exchange rate will likely continue to edge higher within this session. A breakout through the upper border of the long-term ascending channel pattern could occur.
If this breakout occurs, a surge towards the weekly R2 at 1.4248 could be expected today.
However, if the channel pattern holds, bearish traders might drive the currency exchange rate lower during the following trading session.
