The US Dollar surged by 59 pips or 0.47% against the Canadian Dollar on Wednesday. The currency pair pierced the 200– hour SMA resistance line at 1.2768 during Wednesday’s trading session.
Everything being equal, the exchange rate is likely to maintain trading in a descending channel pattern during the following trading session. The possible target for bears will be at the 1.2650 area.
However, the weekly support level at 1.2703 could still provide support for the currency exchange rate in the shorter term.
