The US Dollar surged by 81 pips or 0.67% against the Canadian Dollar on Thursday. A breakout occurred through the upper boundary of a descending channel pattern during yesterday’ trading session.
Given that a breakout has occurred, the exchange rate could continue to trend bullish during the following trading session. The potential target for the currency pair would be near the 1.2250 area.
However, the 200– hour simple moving average at 1.2178 could provide resistance for the currency exchange rate within this session.
