USD/CAD Analysis: Breakout occurs

USDCAD

The US Dollar gained about 96 base points against the Canadian Dollar on Friday. The currency pair breached both the 50– and 100-hour simple moving averages during Friday's trading session.

A breakout through the upper boundary of a descending channel pattern occurred during the first part of today's session.

Given that a breakout had occurred, it is likely that the currency exchange rate aims for the 200-hour SMA at 1.3362 during the following trading session.

However, a resistance level formed by the monthly pivot point at 1.3313 could hinder such bullish movement.

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