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On Wednesday, the US Dollar surged by 53 pips or 0.43% against the Canadian Dollar. The surge was stopped by the 200– hour simple moving average at 1.2635 during Wednesday’s trading session.

If the resistance level formed by the 200– hour moving average at 1.2635 holds, a decline towards the 1.2580 area could be expected during the following trading session.

However, if the USD/CAD currency exchange rate breaks the resistance level, the next target for buyers will be near the 1.2680 area.

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