The US Dollar surged by 67 pips or 0.54% against the Canadian Dollar on Thursday. The currency pair breached the 50– hour simple moving average during yesterday’s trading session.
Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 200– hour simple moving average at 1.2512 could be expected today.
However, if the channel pattern holds, the USD/CAD currency exchange rate is likely to continue to edge higher during the following trading session.
