The US Dollar surged by 38 pips or 0.31% against the Canadian Dollar on Monday. The currency pair breached the 50– and 200– hour SMAs during the London session on Tuesday.
Currently, the exchange rate is trading near the upper line of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the 1.2620 area could be expected within this session.
However, if the channel pattern holds, bearish traders are likely to pressure the currency exchange rate lower today.
