Investors did not miss the opportunity to examine the price movements on the chart of the USD/CAD currency pair as both the US dollar and the Canadian dollar were affected by the Russian-Ukrainian war crisis.
Risky market sentiment will support the strengthening US dollar while the affected global crude oil market will drive the movement of the Canadian dollar as crude oil is Canada's main export.
Current developments, the US dollar moved weakly following market sentiment which risked a slight recovery after it was reported that the Foreign Ministers of Russia and Ukraine will hold diplomatic talks.
Meanwhile, the development of the crude oil market, Iraq has reportedly agreed to increase production to curb supply problems due to the risky war crisis.
Examining the price movement of the USD/CAD chart for this week, the price has continued its rise at the beginning of the week up to the high of 1.29000 which is the latest resistance for the price on Tuesday.
However, in Wednesday's trading yesterday the price started showing bearish signals again by moving down below the Moving Average 50 (MA50) support level on the 1 hour time frame for bearish signals.
The decline if continued today is seen to test the RBS (resistance become support) zone 1.27700 for investors to assess the price reaction for further movement indicators.
If the decline continues, the price will head back to the level around 1.26800 before the lower decline tests the support of 1.26000.
On the other hand if the rise is successfully resumed, the resistance of 1.29000 will try to be broken for the price to record its latest high.
The price target for a higher rise is heading around 1.3000 but needs to pass the resistance at the 1.29600 high that was reached last December.
Investors will focus on Canadian jobs data reports over the weekend that will influence the movement of the Loonie currency.
