On Tuesday, the US Dollar surged by 61 pips or 0.49% against the Canadian Dollar. The currency pair breached the 50– hour simple moving average at 1.2567 during Tuesday’s trading session.

Buyers are likely to continue to drive the USD/CAD exchange rate higher during the following trading session. The possible target for long traders would be near the 1.2660 level.

However, the 200– hour SMA at 1.2617 might provide resistance for the currency exchange rate within this session.