USD/CAD Breakout Could Occur

The US Dollar surged by 56 pips or 0.44% against the Canadian Dollar on Tuesday. The currency pair tested the weekly resistance level at 1.2648 during Tuesday’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, bearish traders might target the weekly pivot point at 1.2560 within this session.

However, if the channel pattern holds, the currency exchange rate could continue to edge higher during the following trading hours.