USD/CAD surges mid-day

USD/CAD had made three attempts to return back into the medium-term ascending channel until mid-Thursday. Most of these attempts, however, failed, as fluctuations of the rate continued to narrow down. Meanwhile, the rate surged unexpectedly mid-session, dashing through the 20-, 55– and 100-hour SMAs and the upper Bollinger band. This move, stopped by the weekly PP at 1.3283, was not sustainable, as apparent from the strong downside potential succeeding this surge. It is likely that the rate returns in the 1.3220/30 area and fluctuates near the 20-hour SMA. Taking into account the Canadian Dollar's movement sideways during the last two days, it is assumed that the given currency may attempt to resume its previous minor trading range.