For the past few trading session the USD/CAD has bounced around the 2016 low level. The historical low level is actually supported by a lot of other support levels. Moreover, the pair has formed a triangle pattern on a small scale. These factors combined are pushing for the hypothesis that the pair will break out to the upside.
By the middle of Wednesday’s trading session the currency exchange rate had also broken through the resistance of the weekly R1, which is located t the 1.2536 level. As a result of the surge, the pair reached the upper trend line of a long term ascending channel pattern near the 1.26 mark.
However, the ascent of the Greenback against the Loonie has ended. The currency pair is most likely going to form a new descending channel pattern. Before that occurs the rate will attempt to find support in the before mentioned first weekly resistance level.