The movement of the Canadian dollar flattened throughout the week as investors remained attentive to the global crude oil market affecting the commodity currency.
In addition to the crisis of the Russia-Ukraine war that disrupted supplies, the movement of the crude oil market was also volatile due to the issue of Iran's nuclear deal which is of concern.
The price movement on the chart of the USD/CAD currency pair shows a bearish pattern with a downward price curve formed since last week’s trading.
Following the reaction of the FOMC meeting which saw the US dollar depreciate last week, the Canadian dollar was also supported by reports of positive Canadian inflation and retail sales data.
The price has slipped below the 1.26000 level in earlier trading this week after resuming last week’s bearish pattern.
As of Wednesday’s trading yesterday, the decline has hit around 1.25400 and hovered below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
While signals for a bearish trend are being evaluated, investors remain vigilant with slow price movements to await further indicators.
For the lower decline to continue, the price is expected to test the support level at 1.25000 to record the latest 9 -week low.
However, if the US dollar strengthens again to boost prices again, the initial rise will test the 1.26000 zone before the continued rise is seen to go to the zone around 1.26800.
