On Monday, the resistance of the 1.2400 held and caused a decline of the USD/CAD. However, during the mid-day hours of the day the rate found support in the ascending trend line of the October 27 and 29 low levels. The trend line provided enough support for a follow up surge to pass the 1.2400 mark.
If the surge of USD/CAD continues, it could aim at the late October high level at 1.2430. A passing of this resistance might result in a test of the weekly R1 simple pivot point at 1.2442.
Meanwhile, a decline of the pair could look for support in the 55-hour SMA at 1.2380, the weekly simple pivot point at 1.2371, the 200-hour SMA at 1.2370 and the supporting trend line of the recent low levels.
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