Examining the main charts, the USD/CAD currency pair also displayed a powerful surge in price to a recent 4-month high in the New York session yesterday.
The US dollar significantly strengthened after Federal Reserve (Fed) Chairman Jerome Powell in yesterday's monetary policy presentation signaled that policy tightening would continue by the central bank.
The market now expects an interest rate hike of at least 50 basis points to be implemented at the March meeting.
The Canadian dollar was also affected due to this situation which has also caused a decrease in the price of crude oil in the market.
Loonie investors in the New York session tonight will focus on the results of the central bank of Canada (BOC) policy meeting at 11 pm, and Powell's presentation will continue later tonight.
On the USD/CAD chart, it can be observed that the surge that occurred yesterday has finally broken through the resistance zone of 1.36600 and reached the latest high around 1.37600.
Slow movement continued in the Asian and European sessions today (Wednesday), but prices remained hovering around the recently reached highs.
Resistance at 1.38000 will be the closest focus that will be tested before the price is expected to continue its rise to higher levels.
The height of the 1.39000 level is likely to be the latest target if the bullish price trend is successfully maintained.
However, if the price declines again, the level of 1.36600 which was previously a resistance for the future price will stop back and form the latest RBS (resistance become support) zone.
A lower drop will give investors an early signal for a bearish trend change in price again.
After tonight's BOC meeting, investors will focus on the Canadian jobs data report and the United States (US) NFP on Friday.
