The move to mass production of crude oil from emergency reserves has pushed oil prices to fall.
With a total of 60 million barrels by the United States (US), the International Energy Agency (IEA) also agreed to the release of 120 million barrels from its storage due to the Russia-Ukraine crisis.
The decline in crude oil prices has led to a significant depreciation of the Canadian dollar for trade this week as crude oil is Canada's main export.
As can be seen on the price movement on the chart of the USD/CAD pair, the price has made a rise of around 200 pips in 3 days.
On Tuesday, the decline was initially displayed towards the support zone of 1.24000 before the price jumped above the level of 1.25000 and the rise continued on Wednesday and Thursday yesterday.
With the strengthening factor of the US dollar as well, the price has signaled a change in the bullish trend after the surge past the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
As of yesterday’s New York session, the bulls have reached a weekly high at the resistance of 1.2600 before the price leveled around below that level continuing in the Asian session this morning (Friday).
If the bullish movement pattern is maintained until the last trading session of this week, it is likely that the resistance zone of 1.26000 will continue to be broken with the next target at 1.26800 to be tested.
For higher gains, the focus is on the zone around 1.27700 for the price’s still continued rise.
Yet if the price is stuck at the current resistance of 1.26000, a possible price decline will test the MA50 support level for a potential indication of a lower price fall.
A decline beyond that level will give an early signal of a bearish trend change with the initial support level at 1.25000 to be tested.
Further decline in the price will return to the support zone at 1.24000 which tried to test the price in last Tuesday's trading.
